@Chris Wagner- That's just too low an amount to make the claim worth it. 

My cash flow using a 40% expense ratio is a modest $19.3k/month (modest for the amount of RE holding). 

Based on how many people have moved here from other states (specifically California, Oregon, Washington, and then a few areas like NY/NJ) along with the amount of redevelopment projects and the chip factory that was put in - I think there will be further appreciation for the foreseeable future.Will Phoenix economy be depended on this chip factory?

Is there any way I can lower the property taxes to the original amount?

If you have a PM that is stealing from you, they probably have all sorts of ways to prevent you from knowing that.I would be surprised if any licensed property manager is misrepresenting the rental amount on the statement.

I also keep a fair amount if cash (10%).

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

In other words, you can manage for lease option properties with the same amount of effort that it takes to manage one rental property.

For example he is trying to place a bookcase door to access a small amount of storage from the bathroom.  

If the receipt says what it cost to do the repairs, that amount should be reimbursed.