I don't really have any experience with real estate investing, though I really want to get involved.  

That involved updating the kitchen with new cabinets, flooring, sink, appliances, made the living room / kitchen an open plan.

Yes, the involvement of your daughter is disturbing and totally not OK, I would tell the Mother (owner) that this behavior is unacceptable and if she is not sympathetic then don't worry about burning that bridge, it wasn't worth crossing.

You need to get an attorney involved ASAP.Look for someone through the Mass Bar Association who has a track record in defending these kinds of cases. https://www.massbar.org/public/lawyer-referral-ser...My understanding is the same as yours - if a property is not inspected and approved by the local housing administration (the local authority that administers Section 8), then Section 8 renters are not able to rent there.It's just a guess, but if your PM said something like "we don't rent to section 8", that could be the basis of the complaint. 

They both involve finding good off market deals.

I am a newer investor, involved mainly in SFR in Gardena and Hawthorne area. 

You are definitely heading the right way, and getting involved in BP is a great step in the right direction. 

The electrical on that one is split.For us, and the option without knowing any more I'd recommend is to : We found the easiest thing to do was to pay the bills yourself and simply build what you think is the average utility bills attributable to each space into the rent price.In terms of marketing, market the place at the lower so you don't turn away people and then negotiate you paying those bills (the increase in rent functionallyThat said, there are other options but of course they involve cost. 

Don't get involved with their personal property issues and let them know the same.

Ive been involved in REI since I was a kid but going off on my own has been daunting.