Eventually that end will probably come, and if they move out the investor has the same issue.

I would put no other assets into this entity such that, if it is sued, there is nothing to lose. 

And it gets around any title seasoning issues when using certain loan programs.I once established a new LLC in order to aquire and quickly resell a house.

I thought I need to have a local contact- someone can come within 2 hours if issues arise?

Apparently personal issues took place and now the GF kicked the tenant out. 

As a Cap Rate is indicative of the risk involved in owning the property, you want to focus on doing things that make your investment less risky if a bank ever had to take over.You can make your investment less risky by doing some of the following things:- Convert all month-to-month tenants to annual leases- Implement strict minimum rental criteria- Add security cameras- Make large capital and preventative improvements (fix drainage issues, install water pressure regulators, replace old HVACs...you get the picture)- Essentially, prove with action that you are caring for the property on a long-term basisThe only way this is effective is if you document everything you are doing as well.

Part of the issue was we were bundling trades with our contractor.

What about fixing those issues up front? 

Maybe, that should be a met criteria, as others on here have the same issue. 

Lastly, be a good landlord and build a certain relationship with your tenants by ensuring that you address all issues and concerns in a timely manner.