the claim that PM cannot share tenant's credit file / application is fundamentally incorrect because (caveat - not a lawyer so this is not a legal advice, was told this by a lawyer, but you still need to talk to your own lawyer)1. the business relationship is between the landlord and the tenant, not between the property manager and the tenant - property manager is given limited rights by the landlord, which include tenant screening on the landlord's behalf, collect rents, etc. and all such limited rights are fully revokable. 

I would like to quit claim deed this property into a recently formed LLC for liability protection.

I have been making a mortgage payments since then on time no problem.The old seller contacted me of course, when they were trying to do the taxes and file a 1098 so that she can claim her part of the interest which kind of started all this and she was surprised that her name was still even though I clearly stated to her for four months, how to deal.  

Can I still take them to small claims?

(This protects you against claims of discrimination.)Good luck!

Heater dude claims furnace fine though I dont think he understood problem.

I noticed some 1031 intermediaries have stated there is no legal requirement for "time limit" after the exchange is complete to quit claim to an LLC, but some recommend holding it in the same title for "some time."

Even doing the work yourself, 15K is unrealistic. 

If you have a relatively new FNMA mortgage, you can usually Quit Claim to a single-member LLC without violating the clause.Any other mortgage probably won't allow, so you should understand the risks if you proceed. 

In my opinion, the problem here is that the original quote was just unrealistically low.