This makes it an ideal starting point for new investors or those looking to diversify their portfolio without taking on excessive risk.Potential for Appreciation: San Antonio's real estate market has shown steady appreciation over the years, driven by economic growth and an influx of new residents.

It just seems excessive. 

Agreed with Account Closed - putting real estate, or a real estate partnership - within an S-Corporation provides effectively no value, while creating significant headaches and tax consequences.The only real benefit left for an S-Corp is partial shielding of employment taxes - but a rental property already doesn't produce any self-employment taxes, so the one benefit already doesn't apply to the rental.Then you have problems with not getting basis in the debt of the property, having a lack of flexibility on future structure, issues with distributions in excess of basis...just nothing about it is good.If the Partnership hires a property manager, and that property manager ends up being your S-Corp - great, now you are perhaps better managing your exposure to self-employment income as a result of these property management fees. 

However, the dog has excessive barking whenever the tenant is not home.

You should only consider switching when your current software has a significant flaw or lacks features that force you to spend excessive time on workarounds.

You increase their energy bill by having to run the pump excessively.

PHX has a hillside ordinance that's not that easy to navigate, so you may lose SF due to excessive slopes or what the ordinance dictates.I'd suggest doing a bit more research - can you get a survey of either property? 

Umbrella policies only kick in to cover any excess of what your initial insurance coverage doesn’t cover.

Fico Scores can drop fast when a person starts to open and take out multiple LOC's and mortgages which is considered "Excessive tradelines" based on your DTI.Helocs are great for quick renovations or repairs and should be used and paid off or down quickly.

You’re looking at turning a $500k gain from tax free to a tax bill in excess of $125k.