We converted to a self-service model a few months after we took over, which has substantially reduced the workload. 

If your manager is just 'keeping an eye' on things, collecting/reminding on a few rents here and there and some light cleanup while being compensated in free or reduced space rent then classifying them as 1099 subcontractor is great. 

PM made a couple attempts to collect and then offered to cover the damage because toilet replacements are not that costly and continuing to pursue the damages did not make sense for them.Airbnb is supposed to cover guest damage but if they refuse to pay for guest damage their insurance has reduced value and cannot be relied upon. 

I felt so bad that I told him that I would reduce my fee from $7,000 down to $3,000.

I'm hoping things move a little more quickly once things go vertical as I heard getting slab poured is the longest wait but I'm assuming there is a labor/material shortage in general in the area so wasn't sure of people's timelines once slab has been poured?

Is her goal to be nice and provide some of the gains or reduce her taxes by trying to split income between her and her ex?

Property management fees and software subscriptions are deductible, and depreciation reduces taxable rental income.This post does not create a CPA-Client relationship.

Usually- it reduces their fear of a the unknown.

During that time, you will have no vacancies and little maintenance costs, and the resident will provide the $$$ to reduce your principal. 

That would be a helpful addition to your plan as you would further reduce your cost of living.Also don’t forget from that $600 you are planning on getting in cash flow you have taxes, insurance, maintenance, capex, and vacancy to consider.With two homes, you may want to keep that extra $20k as an emergency fund rather than spending it on a third property and then be left with no emergency funds.