I'm going to guess they are also managing the place and are taking you for a ride-they either sold you something that wasn't turnkey or they are bilking you for repairs.I'd go and tour the properties yourself, hire your own inspector to go through and do an inspection and then get repairs done or sell if you don't want to deal with it and get rid of the PM (assuming they are connected with the turnkey company you bought from). 

PS...anything outside of our market, we do plan to hire a PM.  

My plan A for my folks will always be to hire a 3rd party, but having done this for a very long time, I know I will come across those that want to be at least a little more hands on and I want them to have an option.Thanks in advance for any suggestions.Cheers,Robert

For example someone trips and falls and hires the "strong arm" to get them "the money they are owed" the strong arm does a quick asset search of what is owned by the property owner (the LLC) and nothing shows up.

Other than the property manager's location advantange, this sauce is the reason why I'm considering hiring a property manager instead of self hosting.After 3 years of the "set it and forget it" dynamic pricing mentality on VRBO & AirBnb, I'm on a mission to really understand what I'm not doing right that an experienced co-host is doing.

Hire a property manager so you can free up your time for your full time job and/or for acquiring more properties.  

Some blame Khafagi and have even considered hiring a private investigator to scrutinize the business.

Hire competent, experienced legal counsel. 

You may want to consider hiring an agent that will place a tenant and allow you to manage from then on.

First, it seems weird and possibly illegal for people at the county level to threaten to remove a state licensed contractors license and threaten it over 6k. honestly I would take 1k from the possible 6k in question and hire a lawyer.