Otherwise, you are effectively selling your house for $6K below list price.

Also plan to refinance later on to remove PMI.

You should use either LLC’s (the old and expensive way) or a Series LLC (the new and more cost/time effective way).

They are in rare form this year, really trying to screw residents out of every last penny they can.They are using comps from early 2018 even though their own rules say the effective date is Jan 1st 2019.I showed them comps from November through January of bigger houses (+400-600 sq. ft.) in my neighborhood selling for less ($20-$30K).

Cap ex, vacancy, routine maintenances, taxes, insurance, landscaping/snow removal(depending on market) and whatever else you can throw at the numbers. 

The building should be maintained well CAM needs to be done and it needs to look good and be desirable  but taking a C Class to B Class or A Class can be expensive and not worth the costGetting good rents by reasonable improvments that are cost effective in my experience leads to more flow than a total gut. 

I had to call tow trucks to remove stuck tenants.

Absentee Owners have been popular for a long time, and are apparently still somewhat effective (people are still mailing to them) but they are getting multiple offers to buy their home.

https://www.moco-inc.com/blog/wa-state-source-of-income-law-effective-sept-30/

You should use either LLC’s (the old and expensive way) or a Series LLC (the new and more cost/time effective way).