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?

I find it's very personal, and dependent a lot on your goals, resources, risk tolerance, location, experience, etc.

I personally recommend people look into an FHA on a small multi to get started.

Rentals are extremely difficult to make pencil right now but would only personally consider higher end projects because the costs are far easier to absorb than trying to build in lower value neighborhoods.

Since you purchased your primary recently and in Houston, I personally am bearish on your appreciation potential.

You could also get a line of credit for about $150k (you should be able to borrow 75% of the value.)The reason I suggest this is…1) you save $40-$60k in selling costs. 2) you have a lower blended interest rate (2/3rds at 3.25% and 1/3rd at 7 or 8% instead of the whole $500k at 7 or 8%) saving you another $1k/mo in interest. 3) you only pay interest on that $150k when you actually use it, not from day 1  Unless you hate this property, or want to buy something you can’t afford without selling, that would be my plan.

I dont like any company personally that does not put their principals on their website as in meet the team.. ... 

If the management fees stay in Sch-E, it is exposed to ordinary income both at Federal and state level, which is way higher than SE taxes of 9.55% (15.75-6.2 (personal social tax already maxed out)).2.

In theory, you could QT the property to an LLC in your name and enter into a lease with you personally.

Personally I’ve got the majority of my assets in real estate.