I think of this as a commercial transaction, similar to a hotel where you have the real estate and operator/management.

But I would like to use my chance to comment on this to emphasize how much of this situation really reflects on how you've managed the landlord-tenant relationship to date.In a high-regulation area-of-operation like California, cordial landlord-tenant relationships will get you past a lot of garbage like this.

There are plenty of out-of-state investors that are able to manage from much farther distances, so you should be fine there. 

It's a great starter property, so you can work out the kinks, figure out management, and build out your team.

Current property manager appears to be unresponsive and also seems to lack work ethics.Looking for recommendations of reliable, professional and responsive property manager who manages in those areas.

I currently own three properties, each managed by a different team.

The LLC should help you lower transaction costs since you as the LLC Manager can buy/sell property, taxes, etc by writing checks from the LLC's business account.I rolled my SDIRA from Equity Trust, no LLC (poor service, high fees) to Madison Trust w/LLC about 6 years ago.

I am considering putting them under a property manager. 

Most of that here will go into the downpayment and closing costs and even then, especially if you long-term rent out the property, you'll likely not cash flow much at all even if you self-manage.  

You can enter for a lower price, learn the management process, and just get a feel for real estate investing without taking on a huge project.