The husband needs to get major surgery that will prevent them from being able to do the work on the house for some time and since they live hours away, they're reluctantly considering selling it and hoping to recoup the money they spent thus far.They're willing to sell it to me for $70K cash and it needs about $70K in repairs (they've listed everything that needs to be repaired and even have collected some quotes from local contractors - I believe they may also have an informational inspection report available). 

But it would definitely be worth paying an attorney to draft a demand letter outlining your communications and payment history with her, showing before and after photos of the work, and highlighting the fact that this will be reported to the state licensing boards (you may want to do this anyway to prevent others from getting scammed, but perhaps use it as leverage until you get some of your money back!).

Worst time was when the rental amount needed updating and the case manager... they will try and do their best to prevent doing anything that increases rent (even though the rental increase is outlined in their processes). 

In addition he say's this rule prevents me from applying rental income from the first property towards my DTI for the FHA.  2.

It's basically a thick sheet of firm rubbery material you put down under the flooring that helps prevent not only foot traffic noises but also ambient noises from passing between floors. 

In addition to the FCRA, the other major risk is identity theft.In order to even be permitted to run credit reports, my PM company had to go through a physical site visit from a representative of the credit bureau to ensure we have physical (locking filing cabinets, etc), electronic (password protected computer lock screens, etc), and procedural (written policies) safeguards in place specifically to prevent the release of SSNs and other personally identifiable information (PII).So legally the PM cannot and should not share a tenant's SSN with you.Note: I have no affiliation with the Law Office referenced in the above links.

I would try to stagger it over a 90-180 days to prevent you from having 100% vacancy. it may be in your best interest to move them all out at once.

This option may prevent you from being cash flow positive for a couple of years, but you should be able to gain equity in your rental property over time. 

Or is it just “be afraid of this thing you can’t prevent, and can’t avoid”?    

B. prevent my brother from moving in & turning the house from a cash flowing asset to a liability costing me money?