@Mai Nguyen, no legal issue, it probably does not make sense to do. 1.

Both apartments are currently rented, would this be an issue in the future to get tenants?

If I am the only member in the LLC, would that qualify for a 1031, or will I run into legal entity issues?

A referee deed will be issued and the most debts on the property will be wiped out.

Yes getting a report from the plumber would be ideal; however, I believe your issue will be no one knew that an open window would cause the pipes to explode. had you given them a notification the first time when it happened then you could say "Hey I explained to you this would happen" or have it written in the lease agreement.

If you didn’t steal her equity the easy out for you might be to just refi before it becomes a legal issue.

I bought a house last year after inspection A general Inspection report showed everything is ok with the plumbing. nothing came up. last month I had some warer backout issue coming up from the bath in the basement, ordered a plumber. 

You will not hear from me about little maintenance issues.

She's been there this entire time and i've had no issues; win-win-win!!!

is it worth offering discounts on rent and asking the tenant to fix minor issues themselves rather than calling the landlord, this to avoid property management company expenses?