She is going to eat the losses and just move back in.

The policy was brought to market about 5 years ago and the losses have been such that we recently took a 20% rate decrease. 

I love real estate and I say this after taking a 63k loss on one flip less than a year ago and I would still do it even if it didn't pay as well as it did although it does.

Is it feasible to have the PM represent me in court if a situation arose to that degree?

However, a fix-and-flip investor might be incorporated (and then perhaps claim the subchapter S election so the profits and losses "flow through" to the owner as they do with a partnership or a sole proprietorship), and take title to its projects in the corporation's name.

There is a big difference between a loss on your schedule e vs how the property is performing from a lender's point of view(due to depreciation).

That thin profit margin could easily turn into a substantial loss.  

This allows for you to easily replace a contractor with minimal loss, should any unresolvable issues arise.2) Write a 48 hour fix and repair clause into your contract.

Market rents are $250-300/month under market for the area so basically the owner shows a small loss on their Schedule E with depreciation.Pushing the rents to market rate would make the deal a great one in the long run but what do you offer on the property now ?  

Ask for best an final and set a deadline.Hope for a little more from the cash offer and then accept it unless 1 and 2 go up in offer significantly making it worth taking the risk they fall out of escrow.Cash is and always will be king unless the difference is too much loss to eat.