A way around the whole issue is something we occasionally consider.  

So far, it’s going really well, and I’m glad we made the shift.For me, the decision wasn’t about issues with self-managing but more about freeing up time and mental space to focus on the next steps in our investing journey.Curious to hear others’ experiences as well!

I'm not sure I would get to cute trying to squeeze every time out of it now with a lease that might cause you issues in the future, but the scenario you describe is common and probably smart. 

The only issue is the interest rate is 7.125%.

Here is the email received"An internal audit has been completed for STR permits and our records indicate that your STR permit was issued in error due to exceeding the maximum 12.5% blockface density.

Can anyone recommend good companies to root cause  and implement solution to fix this issue?

What is as important is that you require the insurance to be issued with you as the landlord as "additionally insured." 

Since Landlords are going to be monitored even more now with the price gouging issues surrounding the fires in LA, I would be extra cautious.

Assuming they are professional and skilled in the craft - alot of the issues you have faced, they will remediate and mitigate moving forward.

I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues.