She is under the impression that the lease says they are supplied in complete working order and that I need to replace them. 

I had to replace the fences after a strong storm last year, which costed $4200 in materials and labor.

So my question is, are you generating more qualified leads with this free time you'll get back, or are you trying to replace this with a VA?

We did, however, replace some of the pipes with ABS.

– I’m exploring whether I can remove the SRO designation and replace it with Artist Dwellings, but I’m unsure of the legal requirements or how this conversion works.If anyone has clarity on the definition of Artist Dwellings or proven strategies for making this type of conversion, I would greatly appreciate your input.Thanks in advance for any insights!

It is a liquidated amount covering only part of Landlord’s damages—for Landlord’s time, effort, and expense in finding and processing a replacement resident.

And, as Nathan noted, you are likely giving up huge appreciation potential, which will likely never be replaced by cash flow.But at the end of the day, if you are in a declining market in LA and are able to find great deals in higher cash flow areas, taking into account the likelihood of needing to outsource everything and additional travel costs to visit the properties a couple times per year, and you don't really care about appreciation, then it could work for you.  

I can see how headaches and hassles can make selling a more appealing option, especially when the market conditions are right and your point about taxes and having a replacement property ready for a 1031 exchange is really valuable.

If the plan is for them to live in the house until they are no longer able (either they pass away or move to a nursing home), then it may be that you and your husband are paying for all of the repairs and things like replacing the roof...or maybe they will treat it as their own home and simply give you the money each month to cover all of the expenses.I'd be concerned if he has siblings to make it clear that the house is yours (though with the in-laws paying for everything the siblings may see it differently) and what happens if you divorce?

Whenever you close on a property, one of the first things that should be done is to check for a leaky toilet and replace it.