For an already-rented property with few repair issues in sight, should I find a cheaper option for management?

Just keep the principle I gave you in mind.

IRS likes a matching principle- you get to write off expenses of thigns that are business assets earning you money. 

I believe they would pay any income taxes owed as the principle gets paid down.

That way you're not asking for more of the potential profit, you're just protecting your downside in case the refi falls short - which can definitely happen.In principle, it should have been ironed out in the Partnership Agreement before the deal happened. 

I would chalk this up as a learning experience, hind sight is 20/20...

This was a principle to principle sale.

Ability to self manage would help with initial cash flow and even if you are slightly negative each month, you have to remember you are also receiving the benefit of a living quarters for yourself along with principle paydown on your mortgage paid by the tenants.

You've improved things, but you're still scraping by.A good investment will have "positive cashflow" after paying mortgage, interest, taxes, insurance, and approximately 10% of the monthly rent set aside for maintenance, 10% for vacancy, and 10% for capital expenditures.Rent: $2,650Assuming $2,150 includes principle, intereset, taxes and insurance, that leaves you $500 for all other expenses.10% for maintenance = $26510% for vacancies = $26510% for capex = $265This totals $2,945 or a financial loss of $295.But wait, there's more!

Lenders look at your W-2 income and IRS return net number (in case you have a side gig with losses) then the primary residence principle interest tax insurance HOA -comparing this is the bottom debt to income ratio.