If you change to LLC, you need to operate 100% via the LLC name or you risk personal responsibility which is exactly what you’re trying to avoid by establishing an LLC.

I have been self employed for many years and recently now filing taxes for a real estate trust I operate. 

Don,Just have an operating account for the monthly rent and repairs, separate from that, do a savings account and put your funds in there for capx

There is variation in the quality and consistency of inspectors, as with any large operation.

If you want the work to be quality, then there are better actual small single-man operations that are cost effective, but a bit more $.

Without taking too much of your time, let's jump right in.Rent comparables, using the lower-mid end of the market:1/1 - $14753/2 - $2500Mortgage 30YF @ 4.359%, 14% downTriplex- 3/2 & 1/1 & 1/1Asking Price 519,000EGI65,400 - vacancy (5%) = 62,130Yearly Operating ExpensesTaxes (1.15%) - 7,785insurance - 1500 repairs (5%)- 3270CapEx (10%) - 6540PM (10%) - 6540Utilities - 1500Total Expenses- 27,135NOI= 34,99534,995 - 27,384 (mortgage- refer above) = 7,611$$$634$$$ CASH FLOW per month, or over $200 per door for this multi in LOS ANGELES, CALIFORNIA CA!!

It might also help to take the pressure off yourself and know that you only have to have the 91k reinvested fast- the rest you can do more research and make different decisions.Somewhat unrelated, I am very excited about the book "Profit First" and using Mike M's method of organizing my RE income.

The most positive thing you should do is to learn how to save more, Partnership types and forming, raising funds that can help you make the down payments, and buying apartment complexes with at least 32 units so you van pay for property management to take care of the daily operations. 

I would be inclined to keep renting to them, but have several inspections per year to make sure things are getting worse and try to get them to clean up their act some and address the extra cat.You could make it a requirement that they clean up their mess (or at least organize it) before you will renew their lease.

As for the other tenant, we plan on having them sign our lease (they have been there for years, and are operating on a month-month status from the old owners lease) and also add that cost into their new lease with us.