These intra family financial dealings can often come can often come with emotional involvement, especially if payments are missed.

I have heard every story in the book, ( I have done 1ks  of move in and outs in the Cleveland markets )  This the exact reason why EVERY investor should hire a PM co, keep emotions out of it , 

You may be making it more complicated because you are already emotionally involved.Ignore your current situation.  

I'm went from positive cashflow OOS investments to "initially" cash flow negative local investment....I'm either crazy or the San Diego market is worth looking deeper into ;)I understand that San Diego is higher priced than other markets and barrier to entry may seem intimidating, but I personally started investing here with low money down and house hacking. 

No reason to get emotional, just go by the numbers.

I will go back and dig deeper into the expenses of the property to defend those to ensure I am not missing anything.

Don't get emotional and there is always another auction next week. 

You will have to take the analysis a bit deeper and really look into the specifics.

I bought it on emotion.

After the tenant moves, it will cost me about $25,000 to gut and remodel the apartment and I can easily get $700 per month more for rent, or $8400 per year more, or $84,000 more every 10 years plus I immediately increase the value of the property $8400 per year more income time 16 Gross Multiplier = $134,400 increased property value + $84,0000 additional rent in 10 years = $218,400.Would you let your emotions and feelings force you to lose $218,400.