The bad news is the action required is greater than what I think you're prepared to do.The two comments that are most concerning are:  1) Tenant is not paying rent AND it's being tolerated.  2) Repairs with no receipt from the Property Manager.Paid $80k, negative cash flow for six months, sat empty for a couple months while getting a tenant, all those are done and somewhat understandable.  

And if you're like me with a zero-tolerance on late payments -- even one day late -- then you really have no incentive to give a discount for prepayment because that money is getting there on or before the 1st of the month anyway.Again, all of this assumes that you view the rent as 100% collectible in a reasonable amount of time.

You have to weigh your risk tolerance against the cost to set up and maintain your LLC strategy.

Local lenders, as those mentioned above, have a higher risk tolerance and can stomach a bit more than a national lender.

The Bay Area is a bit of an anomaly at this point, so be sure to run the numbers based on your own risk tolerance and your own ability to take a hit based on a speculative play.

I would encourage everyone to read the forum rules.People can disagree on opinion but no personal attacks even made in jest or without malicious intent will be tolerated.

I don't tolerate mediocre people. 

So it really comes down to what your experience and risk tolerance are.

How hopefully this will make it more tolerable since there is an end in sight.

The real factor in this question is what is your investor profile (aka your tolerance for risk).