The university UTC is a major force in town, as are the various hospitals in town.I'm not too familiar with Greensboro, I do know Augusta bit. 

If we allow tenants to shorten the lifespan of the equipment, it will raise our operating costs dramatically and force us to raise rents.

If you try and force her to fulfill the lease, I will guarantee 100% she will be a PITA and call and complain, to the point you will want her out.   

Upside Potential and Plan When Acquired: - Rent Raise $600 + (Will force value and appraise much higher for income based appraisal)- Continued Section 8 Opportunity (Predictable Cashflow)- Capital Improvements (Exterior Paint, New doors, Windows.)- Decrease expenses by water being included in tenants lease.- With the higher appraisal due to improvements made, we plan to cash out refi after the 6-12 month seasoning, to pay off the first and land better terms to keep long term.Here's my Question: Because there wasn't many comps, if not any at all,  would the appraisal be based on the income the property is making at this point?

I've stuck with banks so far but with 4 loans now, I might be forced elsewhere soon.

If it's bad enough, you may be able to force her out based on your personal safety.

Oh yes, make sure they have insurance in force as well.

Showing someone the door is open, shows them they have choices and it's not like you're locking them and forcing them in-- this is a CHOICE. 

Fix the building, force the appreciation and collect higher rents.

Find a temporarily distressed asset that can be turned around, add value to force the appreciation, and increase cash flow.