In my opinion, the US and the UAE have agreements to avoid double taxation, so there should not be any additional costs in Dubai.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

A good landlord understands that vacancies & Rent-Ready costs will destroy your cashflow and profits.

The reason not to upgrade, is that you won't get that much more income for the cost of the upgrades.  

I'm not satisfied with not filing the rental in an LLC simply because it's more simple and might cost me an additional filing fee .

Check your competition and make sure your are under them if reasonable to do so.

You will incur more lending costs but you will only be in the first loan for 6 months.

@Tom OchiengI would reach out to a real estate attorney for specific advice on this situation since you already have one tenant who is being difficult.On a side note, when I have inherited tenants, I have been most successful when I have provided longer non-renewal notices, like 60-90 days, and offered to assist with moving costs.

Some serious baked in costs for each. 

If you can rent it for $2,000/month, after fees, taxes, and potential maintenance costs, you’d still make a decent passive income.