Dave Foster- who commented above, is 100% who you want to hire to handle it as well. 

Is there a down side to keeping the properties in an LLC and then setting up an S-Corp to handle the management?

I plan to manage myself to start out.As for Improvements I'm estimating 20k but how do you handle that when it is fully rented?

Or how does he handle that?

Just trying to find a service where they will handle shipping and everything. 

@Dylan Favazza honestly, my cpa handles the taxes.

I am going to return that money later to him.I will invest that money in real estate so how to handle this situation for taxation?

HiI don't manage property and I don't handle leasing. 

A 2BR that tiny could possibly attract less-than-desirable tenants.Here's how I would handle it - as you update the next couple of units at turnover, convert them to 1BR and see how quickly they rent.

So let’s say the first month nothing broke now I have $100 sitting in the maintenance account and on the second month my door handle broke but now I have 200 to cover it instead of 100 because I saved the remainder from the previous month?