Is it really that hard to process some paperwork and comply with an inspection requirement - to get government guaranteed income for a tenant who will likely remain for years and has an extra incentive (loss of voucher) to be a good tenant?

State Farm said there was nothing they can do and will not issue the remaining balance on the claim until work is completed. 

So the fact remains that the property deed is untouched, the only thing it did was hire a property manager and the property management company did not get paid for service rendered.

So long as inventory and interest rates remain low, home prices will continue their upward trend.

It is a residential rental not commercial and should remain that way.Your best response is simply ........

In addition, these tenants will be sent to a collection agency if they do not pay the balance due which includes the past due and remaining rent due on their lease.

I would just say "move in inspection dated xxxx remains in effect."

Is it common for a property manager to contract an owner for a period of time, like a year, and require that the agreement remains in place as long as a tenant they placed resides in the property, and for the agreement to renew without notice unless the owner provides 30 days notice?

If tenants want to make minor improvements, they not only bear 100% of the costs, but all improvements remain the property of the landlord.

In that event you are taxed on the difference but still get to shelter the remaining profit in your 1031.3.