We purchase distressed properties and fix them up (improved cash flow & forced appreciation).

Long-term a San Diego SFR has a good chance to be a good investment but the smart RE investors are not purchasing them at retail and many of them are taking a loss in the short-term.Your brother-in-law likely is not so dire to sell to be willing to take significantly below retail price. 

My plan is to call her and give her “one more chance” to see if she “accidentally” picked it up while reminding her that her lease is up.Her moving will cause her to possibly put her kids in a different school district which would be a big problem I also contacted my attorney and I am waiting to hear back from him as well. 

Chief among my concerns would probably be my ability to resell the thing, once improved and rented out.Thoughts? 

If I believe they have taken steps to improve their situation, and I am comfortable they will continue to do so, I will often request something to mitigate my risk and move forward anyway. 

I use it as a tool in the very back of my toolbag just in case by chance a seller is interested.

I will be improving my picture soon but didn't want to keep using not having one as an excuse.

Is there a way for my parents to advertise the bank's sale of the house to drum up interest and maximize chances of healthy bidding? 

Gives you a chance to grow your portfolio quickly2.)

So I don't think his main plan was to force appreciation for 3-7 years, then sell after the NOI was maximized.Is it possible that super expensive real estate like the kind Trump might buy does appreciate that much just by the market without forcing any improvements in NOI?