I agree with @Thomas S. and recommend getting into multi-family.

I would agree from an ownership standpoint about just keeping it as a long term rental, especially if your out of state. 

I cannot agree more, Podcasts and YouTube videos of BP are my best company in my commute every day!

I agree with @Robbie Reutzel on figuring things out...Usually you can get bank records to show either the expense from the tenants, or the monthly income from the Seller. 

I agree with @Thomas S. but based on what you said about the property, I would be surprised if this is a financeable/refinanceable property.And probably most importantly, if that PM decides to wash their hands of the property, what's the backup plan?

But, sometimes the issues needed to be dealt with might prevent some types of financing, so the Escrow method is one way to stay on track.This also assumes, of course, the lender agrees to it.

The contractor agreed at the beginning that the scope of the work was well within the time limit agreed upon, but now seems to be struggling to meet the deadline.

I agree with @Johann Jells - If you are in contact with the tenant and they are being somewhat cooperative, consider yourself lucky! 

I completely agree with the steps you brought up. 

Agreed.