Just an observation that the lack of an overhang with the tile may have contributed to the water damage.

If it is a month-to-month rental (or verbal, which is the same thing), then you have to give 30 days notice before making changes.I recommend you spend 3-6 months observing the tenant to confirm you want to keep them.

Locationally they also depart from most retail site selection norms from what I've observed. 

I used a faucet as an example because that is an item that normally breaks down first and often observe customers walking down the fixture aisle at HD or Lowes looking for the least expensive option, whereas purchasing inexpensive tile or other cosmetic items won't necessarily cause maintenance issues although I would argue will cost you revenue (more on this below). 

The asking rent growth rate decline of 2.7% observed over the past 12 months compares unfavorably to the long-term performance of the metro, and rent growth deceleration has been shared broadly among the Los Angeles metropolitan area's thirty-seven apartment submarkets.Competitive Inventory, Household Formations, AbsorptionThe first quarter added 6,770 net new households to the Los Angeles MSA.

Anyone who's been observing long-term trends will likely be thinking: I should be getting my FIXED Interest Rate Loan in place NOW, rather than waiting to do it in two years time.But here you are, being lured into doing just the opposite?

After 45 + years investing in, purchasing and selling notes and real property; structuring “deals”, running investment funds and syndications, I have observed that many (most) investors both hesitate too long gathering too much information before making an offer AND do not do enough investigation, analysis and due diligence before they finalize a purchase.Seems like opposites, right?  

@Michael Noto: Great observation that "Good PMs manage properties in good areas ...good PMs do not deal with bad areas for the most part.

Just my observation. 

From my observations 90% of those who post on the forums about asset protection cannot articulate the risks they believe they are/must protect against with their recommended entity formations.