I agree all the points you two brought up are things I need to consider.  

Dude brought the pain!

I'm sure the empty apartment and turnover cost her more than the extra $ 25 would brought in for her.When you bought the building, if you had done your due diligence, you knew that you were taking over tenants without deposits (unless the seller lied about that), so, that should have been part of your consideration and you should have weighted the pros and cons and worked it into your purchase price. 

So I brought it up again as a way for me to offer him the full amount he was asking for.

My wife crossed out the legal fee & halved it, then told him to apply it to another deal we brought him.Establishing a personal rapport with an excellent attorney is beyond valuable.

I dont feel its right for me to be asked to do this as I brought the property as is from the previous owner and I dont have the time and resource now to take care of this.  

Start with what you conservatively believe the property will sell for if it is brought to market standards (more on market standards later).

That’s followed by a 90 -120 minute presentation by somebody Phyllis has brought in to tell the group about the real estate services they were selling.

So, I brought it up, saying that she owes rent and that the amount was large enough that it made me think that she trashed the place.She then said, that , no, she didn't owe anything and that she had paperwork to show it.

Bank loan was 80% & we brought 10% to the table.