A foreclosure/ auction/ etc. is going to give you the delta you need to make it pay off.

Or is it more due to the stereotypes around people on Section 8/the other tenants are paying a considerably lower amount every month?

Pay them well.

Bonus: You get to stop paying any fees related to the FL LLC.

Depending on how much money you're making (which, if you're at a loss, may not be a ton), those trusts can sometimes cause more tax than going the standard LLC route and just paying the $800 in the first place.I'm not sure from your post if you're talking about income taxes that are owed, or the $800 LLC fee, which is more akin to a franchise fee in the terminology that you're using. 

This could be useful information if you need to push back on this and you might want to consider floating some questions back to the landlord about the depreciated worth of the door and hint that you are not expecting to pay for a whole new door.  

., first off you never state who should be paying for the damage? 

The pay at it was so low it wasn’t helping provide down payment money but it did cover my cost of living.

Hire a professional to do it and pay them if it needs to be done.

If it needs to stay in the original account, can I use it to pay for other expenses?