I had to submit a receipt for the replacement elevator key and they are only considering the actual costs (not the $125 as stated which covers my time in handling).

I fully agree with @JD MartinYou will have to make sure that they are versed in rehab projects before allowing them to handle large projects.

I've got experience with investing in rental properties while living far from the state the properties were in and I think the key to being successful with it lies in having a property management company you can trust to handle the day to day issues.

We usually bill our owner's via cash rather than accrual (IE our July owners statement for an owner has their July revenue minus expenses paid in July) but the owners get confused when the cleans don't line up to the stays, so had to train our bookkeeper to include the July cleans on the July statement even though that invoice was paid in August, which is different than how all the non-cleaner invoices are handled.

I will hire out to another expert to handle other aspects of our finances to make sure those are on the right track.

@Dave Foster knows all about this and handles these all over.

When turning basements into ADUs, and the breaker box, furnace, and water heater are down there, what are best practices for handling them?

There's a few other things to think about too: 1 - Possible owner financing if he wants to still get a stream of income into retirement at an attractive rate compared to the rest of the market (win/win scenario, you don't need to come up with as much cash, and he makes a little $ on the %) 2 - Consider a post possession if he needs some time to move out but needs the cash up front for whatever reason 3 - Leave all the furniture/junk in the property and you'll handle clean up etc. 

Compared to your last 3 years of average NET portfolio income, what percentage would be acceptable to you if a PMC handled +90% of the business?

Operating Convenience Administration: Managing the LLC might be easier if it’s formed in the state where you reside, especially if you plan to handle administrative tasks yourself.