Thanks in advance and I look forward to becoming a part of the BP network Hello Ryan,The reason why there are horror stories, is because there are many companies out there claiming to be "turnkey" when in fact they are NOT.

I have a great team in place and I make it work but you end up with a quit claim deed you probably can't clear up for a couple of years so your all cash tied up or hard / private money.

Most Professional Property Managers do everything; collect rent, schedule maintenance, pay taxes, pay mortgages & HOA dues, process security deposit claims, marketing , leasing , on call 24/7, handle landlord-tenant conflict.

Pictures were not taken, she claims to have renters insurance.

Correct, if you want to procure a conventional, agency loan (IE, Fannie/Freddie) at the lowest rates/fees, you'll need to quit claim deed the property from the LLC to the individual borrower(s) name(s). 

I have a rental property in Costa Mesa, CA and a tenant claimed that after she cleaned, her carpeted floors in her room were wet and she was worried about mold being under the carpet and in the walls.

In response to this, our eviction attorney sent them "Discovery" paperwork to respond with all the details and proofs of the habitability issues they are claiming.

However my experience is that many people claim they knew nothing about a court action and yet the plaintiff has proof of service. 

I know I need to claim the 'distribution' as income.  

People do it illegally all the time, until someone rats them out and they get shut down,  Also, I wouldn't want to have an insurance claim (especially a fire or some large liability issue) for fear that the claim would be denied once the true usage of the property was discovered by the ins. co.