Purchase price at max would be $140,000, I need to put in zero money in rehab but will more than likely put in about 10K to attract some more tenants. 

I for one have zero issues investing there or Torrington.

Bear in mind title is wife and I name and we have the proper insurance policy to protect us from suit.

If the seller owes that close to market value, they have zero equity, and that's without even considering repairs.

I will list the numbers:current rent $1950/month (going to $2000 in about 6 months at end of 2 yr lease)My expenses: annual taxes $7950 ($662/month)                        Heloc balance $170k interest currently 5%                        land lord policy $1150/ year                        Self managed                        Maintenance : has averaged $300-400 per year.Reasons I am considering sale :   1) property is currently worth about $270k (making me feel roi is low).                                                           2) property has a pool which is a liability that I'm not completely comfortable with.                                                           3) property has a heloc balance against it of about $170k that I technically cannot deduct the interest                                                                       because it wasn't used for the property or any other rental.                                                           4) Tax treatment: my understanding is if you sell it having lived in it 2 out of last 5 years the capital gains                                                                 would be exempt. 

You may want to first verify their license with either the county or city, and ask to see their insurance policy before you hire them.

Pre foreclosure lists have always interested me but after speaking to a few high level investors I noticed because of certain policies most investors shy away from pre foreclosure.

When you buy your regular landlord's policy for your 4-plex it will come with dwelling coverage, which give you protection in case of fire or other property damage, as well as "Premises Liability".

Would you tolerate this crap from an employee?

For the first card, put a small monthly recurring transaction on it - like your Netflix subscription, and setup auto payments so the balance zeros out every month.