@Allison PanilaI’m not sure if it’s legal for the landlord to raise the rent in your area ,but it’s safe to say your friend is breaking the lease and is trying to rationalize bad behaviors .Id try to get her and her boytoy out too.

Personally I would keep looking and stop rationalizing how it can work in your mind .

You have $350,000 in cash available to invest, and your bank has said that the potential financing terms would be 80% loan-to-value, 1.20 minimum debt coverage ration, 6.75% interest (fixed for 5 years and floating for the remaining 15 years of a 20-year term), with 1 point payable at the closing.

rational people do not think every inherited tenant is bad. but rational people know that inherited tenants remove a degree of control and thereby increase risk. you are safer in assuming they are bad tenants, than in assuming they are good tenants.

Of course, one's network connections are super important is such a market where rational and irrational seem to cross paths.

I understand that the FoxConn project is putting upward pressure on prices, but I don't see a rational justification for a $20K jump in 9 months.

How does this work if I try to purchase another property for my debt to income ration?

I am a rational person  and it happened to me. 

it’s impossible  to make a rational assessment of what’s wrong. 

But you're right, once you view it rationally like that, it can remove the emotion and put you in a position to learn and grow from it (which is exactly what happened to me here).