Completely eliminated noise complaints from the lower level and reduced utility costs.

You should only be liable for tax on any appreciation since you inherited the rental (minus the cost of your improvements). 

@Dhruv Patel I believe you are getting ahead of yourself....Where in the US are you all-in (land acquisition, soft costs, hard construction) on new construction multi-family for $100/ft.

to save costs, and responses sometimes took weeks.

I live and invest in Milwaukee since 2007, so probably a little bias here, but we are set up very well for future growth. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

Would you rather set it and forget it and not need to refi again or rather take advantage of low/no closing costs on this loan and plan to be more aggressive on your rate at the time of your refi?

We try to set up at least 3 timeslots each week when we can schedule all the showings to minimize the tenant interuptions.If they won't cooperate or cancel too many scheduled showings, we warn them we will pursue collections to the fullest extent of the law. 

Option 2: Electrician recommended mini splits - said 2 units should do the trick and would cost around $6-$7k.Heating system 2 is forced hot air oil furnace specifically for the 3rd unit.

Here are additional comments:1) Buying out of state removes any local knowledge you have from assisting in your success, including knowing areas, people and costs. - We always recommend buying your first rental locally if possible and DIY managing to learn as much as possible before investing OOS.2) Lots of crooks and incompetents in the PMC world:( They both cost you money.- As already stated, you'll have a small portfolio.