True value is as much as someone is willing to pay, correct?

You also have to factor In your closing costs each time you refinance, and if the goal is to pay down your loan aggressively, you will be hitting reset each time you refinance. 

Make sure you have good comps on similar properties because you'll be paying for appraisals, etc.  

Now you need to figure out how to find deals and pay for them.

@Amee Gardner I’ve learned through several bad experiences not to pay good money for courses or gurus.

My advice is to speak to a few local HMLs and ask them for their rehab estimate spreadsheet, which most should be happy to provide.FWIW, based on my assumptions above, you can’t pay more than around $480k for this property.

Does she pay her rent on time, if so I would just give her some time and see if it's just a rough patch. 

If a major repair is needed in the community and they can't fund it, they can call on the owners to pay for it. 

Each guest pays $29-49 depending on property size and that provides up to $1,000-2000 in damage protection in lieu of security deposit to satisfy the owner and avoid deposits. 

Landlords manage from a distance and "assume" everything is going great because tenants pay rent on time.