So while you may not see a gain in value over the next two years, over a 10-20 year span you would typically see excellent growth.Also unlike the last five years where operationally the operator could be awful but saved by appreciation, today it is all about the asset management.How can you reduce costs, are there ways to add amenities to increase rents.

I'm curious to understand if it is an area worth investing in.

Larry, If I’m following your math, you need to find a way to increase your income outside of the rental property to cover the mortgage+heloc $1500 payment.

Any PM worth their salt would have already served notice and had the ball rolling on eviction and just looped you in on the situation. 

I am getting 6 extra windows at no cost including 2 transom windows in the bathrooms that really provide an higher quality feel and increase one of the main areas that tenants and potential buyers really care about (Bathrooms & Kitchens).

So, that will bring you long term wealth, not cash flow.https://www.biggerpockets.com/forums/48/topics/1159104-overleveraging-net-worth-cash-flow-and-headache-factor You might take a look at what happened to this investor she tried going out of state...Hope this helps. 

. - The lease doesn't mention anything about increasing rent, but from the payment history it looks like they did increase her rent from $650 for the past ~3 years to $725 in Jan of this year.

There is slightly less risk if these MIL and additions have been done decades ago, versus last year, but still worth checking with the building department and zoning to understand what their enforcement is.

Here's a quick summary:East Tennessee home sales saw a 6.3% increase from the previous month but were down 6.7% from a year ago.

- Are you digging out basement to increase clear height?