I have been with a property management company for 2-3 years in Arizona and the property is being run continuously at a loss.

If you miss on fence, landscaping, etc, these are small and you can recover. 

I feel a loss of direction and that makes it really hard for me to focus and build.Do we keep at building a portfolio of small multi family (very abundant in my market, very rare to find anything above a triplex for sale), with plans of selling the portfolio and 1031'ing into larger properties? 

If there’s no response, consulting with a real estate attorney would be wise to determine how to terminate the agreement and recover unpaid rent.Once they’re ready to switch PMs, I can recommend some reputable property managers here in Indianapolis who are responsive and trustworthy.

Sharing leases, profit and loss sure but no inspection. 

Note this election MUST be made in the year of the dispositions.2) 1031 - There's usually no tax on gains or losses when swapping property for similar property.

As the investor gains experience, they are not only able to more successfully foresee the “bumps” along the way, able to handle recessions, temporary negative cash flow, unforeseen capital expenditures without panicking, but will also recognize the opportunities necessary to turn a loss into a break even.

Loss of Use / Loss of Rents: Normally, there is a 20% included limit.

I just can't accept such a constant ever increasing loss, even if I can afford it. 

I do want to point out though that Cleveland's population loss has finally stopped.