Even if prices appreciate moderately you could end up negative just taking into account the in and out transactions costs.

This still doesn't negate the fact that she still refuses to pay rent and hasn't paid in months and I'm told I have to file another ejection to gain possession. 

I would strongly suggest that you educate yourself on the subject as there are many excellent threads on the subject already on this forum.Also I would encourage that you learn about the negative aspects of using an LLC too (cost, lending limitations and rate, use of a lawyer to represent it in court, ...).

I look at facts and statistics, but I know it can be an emotional subject.

Another consideration - You can always start with a curtain, then install a shower door down the road if you receive negative feedback from guests.I like to think of decisions as a 'one-way door' or 'two-way door' - A 'two-way door' is a decision I can reverse for low to no cost.  

Sorry to start with the negative, but insulting a group of BP users/contributors with "Rule #1 of investing: NEVER listen to a mortgage lender on business operations advice" is not cool. 

Have imaginary perspective to what one can do for the house- Ability to forecast appreciation and market analytics either by data-driven analytics or analyzing using ZHI/Redfin or other software.A 15 year statistical analysis, is showing by average bay area appreciation is about 5.785% constantly.

Provided you got good credit(not lower than 580; lender dependent), got a reasonable debt to income, don't have negative credit history and your application info is in line with lender/loan product guidelines you should have some ease(subject to lender approval).Some ways to proceed:FHA loans, bank statement loans, conventional loans, DSCR, hard money for buying the property to rehab and then a cashout refi after the rehab to get a more stable loan, etc.

The negative was that we basically made no money and probably lost money on this business model.

If you're looking for market averages in your area, instead of what's the norm for you investors who particpate in this forum, then I would suggest looking for the statistics section of your local realtor's association website.