The property needs a new roof and landscaping retaining wall, some repair and paint to the deck, and all of the exterior door frames need to be fixed/replaced. 

The one that did had to build a huge retaining wall.  

I am also considering modeling this PM LLC as a C-Corp to see if I could retain earnings (keep them at the C-Corp without distribution) and use those earnings for future additional acquisitions owned by the C-Corp.

I would discuss with the tenant and explain what the legit charges and how they exceed the 1 months security deposit on file but given their length of tenancy etc that you will settle for retaining the security deposit.

Jason Lawhorn (and everyone else in the firm) is easy to work with and has direct experience with investors who are relocating to TN but still retain assets in other states. 

Right now all other owners retain water and power billing between tenants.Thanks for insight.

Which means 90% of the time we retain their "Option Fee" (not a down payment).

I'd say in today's market you could build a very reasonable builder grade home and sell it pretty quickly or retain it as a rental.

Do they retain any 1-4 family loans?

Dose offering certain amenities for free relay help attract and retain tenants, charging for these could help increase revenue and cover the cost of providing those services. but is it even noticed or appreciated worth the increased income?