After mulling it over I am leaning towards selling and taking advantage of a more favorable market.

Observe nearby convenience and liquor stores carefully.

Many can’t compete with the new apartment complexes that are being built with open modern interiors, amenities and convenient locations unless they lower their standards for tenants.

I am leaning towards having the tenant pay the water invoice online, but I'll have to include some good language in the lease so that it is clear how that should function.

Also, there are grey area legalities that makes the lack of a legal owner convenient.

@Robin MoralesHey Robin, yes I host one in Eagle Rock, the link is in my profile, but I’m all about convenience :) you are welcome to come anytime but Joes is for sure closer to you. 

You'll get lower LTV and can't roll rehab costs in to your new loan, it makes the cash out too lean, especially in an appreciating market.

If it helps I'm also leaning toward the BRRRR strategy.Thanks!

This deal is too lean even without property management included in your analysis, from those numbers you'll like be cashflow negative within a few months.Consider renting out each room if your market supports it, That could raise how much you get in rent each month but expect to be more involved if you're not using a property manager.Good Luck! 

I added value by closing at his convenience, giving him cash to walk away with, and allowing him to take what he wanted and leave behind any unwanted belongings (mostly trash.)