It's not worth hiring a lawyer but as you suggested, small claims court may be an option IF you hired them in your personal capacity OR if your jurisdiction allows LLC owners to go to small claims and represent the LLC in court (many, most?

In my experience, the average Section 8 resident behaves differently than the average market rate resident, and the government-backed rent is not worth the added hassle.  

Also, watch out for any litigation or construction issues that could lead to HOA fee increases down the road.Alternatively, you could consider a good deal on a single-family home or a 2-4 unit property.

Here is the scenerio:3-unit investment property worth $2m.

You don’t need to be someone that owns $100M worth of real estate unless that’s really your goal. 

That being said, there won't be any down payment required since you have equity (you're guessing ~55,000 but I wasn't sure if you were meaning the property is ballpark worth ~$175,000, or more than that). 

Repairs ($5k): Increase to $10k for unexpected issues in a 4,000+ sq. ft. property.Total reno costs will likely fall between $180k-$210k, not $145k.

Find the best local real estate investor meetups that have no pitches and you will increase your knowledge, camaraderie, and motivation ten-fold.

It doesn't have the same filter capabilities as REsimpli did but the triple dialer was awesome and so worth it.

For what it's worth, I tried to run your numbers using the proforma I use with my CFO clients and I'm getting an IRR (average annual return) of nearly 23% (see page 2): Kalamazoo Properties