Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Let me know if I'm looking at this all wrong or what you'd suggest. 

Anything goes wrong and that $29k depletes fast because itistoo smal, for this side effort - my rule on value adds is they must add value 2x minimum because they have risk and require work.  

If you own multiple rental properties in the same LLC and, god forbid, something goes wrong with one or a few, the rest of the performing properties are put at risk since they are also owned by the same LLC.

Please contract me if I am wrong 

I went and took the measurements and they are off by 1 ft to 2 ft and location of various rooms in the appraisal report is all wrong. 

I think you are focusing on the wrong thing. 

If you’re doing everything correctly as it seems you should be fine and again there’s nothing wrong with adding the management LLC but don’t expect additional liability protection as a result.

Otherwise there's really nothing you can do since you can't get rid of the neighbor, and if the tenant isn't doing anything wrong you have to abide by the lease. 

So if you're looking to increase passive cashflow you're probably looking in the wrong place.