I think both methods can work.

I require all new tenants to use it, but I have a few that use other methods due to them being tenants when I acquired the properties.Background and credit checks are easy to send to an applicant - they pay 55.00 and I get the reports quickly. 

Id work the DSCR route and Use the stacking method......1>2>4>8>16>32>64but but make each one of those Duplexes and not actual doors......1 duplex, 2 duplexes, 4 Duplexes, 8 Duplexes.

Application screening is method of determining risk.2.

They were communicative until they got my $8,000, after which all promises of being a platinum member with access to live support vanished.

I have gained 100% returns on money invested with this method overlaid in a recoverable down market.   

Given their request for an addendum, it's important to communicate clearly with them without getting involved in their personal disputes.

All of these  software programs will consolidate your operations down to one system, give you a portal for tenant communication, maintenance tracking, document storage, etc.

20% just seems a little low to me for full-service (communication, revenue management, multiple channels, turnover and maintenance).  

However, there are structures and methods that might allow such a transfer without jeopardizing the 1031 exchange, but they require careful planning and legal guidance.