However, I am worried about the outdated electrical and water systems for safety concerns.

Despite this, substantial changes are imminent and will start rolling out this year.The initial change will be the mandatory registration of all short-term rentals, accompanied by a registration fee.

My concern is my bank account doesn't show that currently (I do have the paystubs to back it up).

Your new PM can hold the funds or transfer them to you.As a side note, I'm concerned that your new PM wants you to hold the deposit.

Also, when your lenders dive deeper into county records or operator standings, do you find they tend to uncover any common concerns, or is it more of a formality for peace of mind?

I am concerned that he/she is either filing bogus small expenditures OR performing services himself/herself and making profit.

However, as an investor, I’m concerned about falling values and losing equity.

We have some concerns:1) Should we a new LLC and have our old one hold stake in it?

I also own/operate assets where I am not concerned about a tenant showing up at my front door.

If you are younger and seeking to rapidly build a cash flowing portfolio, if you are wanting to continue 1031'ing into bigger assets, or if you do not have the cash to take down entire deals without financing, leverage makes a LOT of sense.If you are retired (or rapidly approaching retirement with a level of uncertainty or concern about what your post-retirement income will look like), it could make sense to begin paying off properties so that you reach a point where your expected monthly cash flow will exceed what you need to live comfortably after retiring.