An umbrella insurance policy may be sufficient (vs. the LLC).You'll want to run your numbers and determine if your current home will perform well as rental. 

If you find any infractions after performing item 3, such as obvious evidence (smell or other) of smoking of any kind, start the eviction process according to your own lease terms, with careful attention to landlord/tenant law in your state.5.

What would I be legally bound to and do I need to use a licensed contractor to do the abatement, or could I perform it myself through encapsulation/wet sanding with HEPA filter?

It's the most expensive service that PMs perform and it can create liabilities for the PM if they aren't managing after the fact.

I watched my stock market account shoot wildly up and down, while this property consistently handed me checks for $1,150 each month... the rental property was a better performer.

The only other ways to determine that an appraiser may look at are:1. the performance of the property (income).2. how much it would cost to build new.I know these don't necessarily help you out, but I would always error on the side of caution in these types of situations and measure the way an appraiser would measure value.

Who are you letting down by not creating space and therefore not performing at your highest level?

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

Those accounts have performed well over the years, but are susceptible to the usual ups and downs (I know, long term it is always up) of the stock market. 

As my GC says: "if it's stood straight and true for the last 100 years, it'll probably make it at least another 25".I own properties from the 1910s, 1940s, 1960s, and early 2000s –and frankly, the older properties are some of my best performing, and least headache-causing properties of the portfolio!