One of my concerns is that the Building Department has property as a 3 and 2 family but the Tax Assesor has it as 6+ (which causes me to pay high taxes).

I lost a tenant due to medical issues causing them to have to break their lease at no fault and it will cost me 2k more with current management to get a new tenant.So my question: Should I bite the bullet and get a new tenant or maybe find a new property manager that doesn't have such a high fee and use a HELOC or cash out refinance to fund further real estate purchases?

I lost a tenant due to medical issues causing them to have to break their lease at no fault and it will cost me 2k more with current management to get a new tenant.So my question: Should I bite the bullet and get a new tenant or maybe find a new property manager that doesn't have such a high fee and use a HELOC or cash out refinance to fund further real estate purchases?

So if we are looking for root causes to the issues the O.P. is having my first questions would be What is your property managers screening criteria?

The only mention of water intrusion by sellers was "Only ever a tenant caused issue and mitigated in full". 

He overpromised, under-delivered, cut corners, knew nothing about building codes in our city, employed teenagers, stole from us, caused thousands of dollars of damages to our property, and vanished.What we are doing differently as we recover from this debacle that we hope will help you in finding and selecting a great GC to work with:Ask for contractor referrals from trusted, community established organizations.

conventional, It was a bit of a stretch cause I just closed on a duplex in airway heights and then this popped into my life How did you add value to the deal?

This potentially caused us to lose out on a few other tenants who were ready to begin the lease ASAP, but we decided to go with this couple because they had better credit scores and financial situation.Does anyone have any advice on ways to prevent this from happening, such as including a fine for people backing out or requesting the security deposit upon signing of the lease?

There are many factors that may be causing this. 

My neighbors gutters were clogged and the hole is still there.I am now convinced that the neighbors neglect of fixing the hole is the cause of the leak.