Even a typical water heat replacement would set you back signficantly.There's plenty to the puzzle that i am unaware of but with what you've outlined here i would consider passing on the property.you know you need managementyou know you need to remove at least one tenantyou know cashflow is meager after considering management.i personally wouldn't recommend a client take on the risk for such a paltry pay out out of state.Even when considering long term appreciation the average amount of headache one assumes with a property will bog you down before the long term play pays off.

It wouldn't be a way around the regs.Sell would be something if you would make a decent profit and could find something to replace it.If you convert it to a LTR, could you absorb the expenses?

This is when your intermediary would take title to the replacement property before your relinquished property is sold.

Nothing can replace you being in the room when both small and large deals are being talked about. 

Plus the much has to be replaced and the rocks do not.

We did a full remodel on the property, including but not limited to HVAC replacement, electrical panel upgrade and rewiring, and cosmetics.

Most recently a shower tub needed replacing, well he paid his maintance man to put a fix on it 200$ -then 1 month later the bathroom costs 4000$.

Paint cabinets instead of replacing (dependent on the area, see this work in many markets, instead of paying 2x-2.5x the cost)3.

If you have one abuser, it won't affect everyone else systems.One thing not mentioned that could possible be a concern is were they are placed. ie. are they all positioned well for inspection and/or replacement if need be?

At some point, when pure cash flow is more important, then looking at a longer buy and hold strategy may make sense.