It’s gotten me seriously considering bringing an attorney in-house to handle evictions and other legal needs moving forward.I’m evaluating this from two angles:Cost Efficiency: With the expense as high as it is, having in-house counsel could potentially reduce costs over time.

What process reduces the payoff by 12 years?  

Would it break fair housing laws to say we are not willing to work with the program since it's not a source of income and they pay on their behalf?

Using a 1031 to upgrade to a two-family could help you reduce or eliminate the $1,000 out-of-pocket expense you’re paying now.Also, condos often come with HOA fees that limit cash flow, so be mindful of their impact.

That is a 3.4% cash on cash return in year one (7903/232000)Year 2, reduce 7903 by 5592 because there won't be property tax break so that is $2311, or 1% c/c return in year 2 (2311/232k)Year 3, reduce the $2311 by $4930 for PM fees for a net loss of -$2619 per year or a -1.1% c/c return in year 3 (-2619/232000)Essentially, these numbers are so far off of pro forma and there is pretty much zero wiggle room on these numbers. 

Quote from @Aaron Zimmerman: I would look for other ways to legally reduce income such as cost segregation studies.

The flat fee buyer agency fee reduces the amount of the buyer credit/refund, generally by $6,000 (although options range from $999 to $8999, depending on how much help the buyer wants from the agent).

Also with plans to reduce industrial "intensity" in and around residential areas. 

PM is lying about the fair housing laws.

Diversifying your portfolio could reduce risk and improve overall returns.Higher Cash Flow Potential: If you redeploy the equity into markets with higher cash-on-cash returns, you could significantly increase your monthly cash flow.