That looks pretty bad for your cash flow.

Because if were talking out-OUT, well, back to start right, who wants to be a GM in a company of 1, without upward mobility they can directly impact and influence. 

Tell her (your attorney said if your afraid of being the bad guy) your unable to comply with her request, but you will let her know when the new unit is ready to move into.

Like deferred maintenance, (bad roof, worn out water heater/AC Unit, warped flooring, water damage) etc, unpaid utilities,  unpaid taxes, a second loan, unpaid HOA fees, a bad pool, bad reputation, sometimes squatters, sometimes they were drug houses, and so on.

I realize this could have been bad luck (for the PM company) but while they accepted responsibility, they didn't, for example, reimburse the cleaning costs.

It's pretty easy to get suckered into a bad out of state deal because others want to make a quick buck, and you'll be left holding the bag. 

And how do I roll this into a cheaper mortgage (my dti would be too bad for another conventional).Maybe a lender would be able to consider the electric "working" with the proper inspection?

Open ended contracts, particularly verbal ones, usually end badly.

1) Yiu REALLY need to know what CA will  allow you to do, I don’t know, but the state may say too bad landlord, you lose. 2) Assuming your attorney (Or you if you’re able to decode the laws that relate to your situation and are willing to go to court in front of a judge against a “sick” kid.) think you have the right to collect the rent I’d give them two options. 

Sounds like a bad situation.