Looking out for suggestions @Kaushik SarkarIf the equity in your properties is your only source for new investing, and the new property you are buying still cash-flow's with the cost of your borrowed money (from your properties), there is no reason to not use it as an investment vehicle.  

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

I’m a newbie so please forgive me but the Opex at 24% of the Gross rental income seems low.

Cash offers with low to no contingencies are typically going to be more appealing to sellers since there are less "hoops" to jump through compared to traditional financing.

They undergo regular training and stay updated with industry trends, laws, and best practices, ensuring high-quality service.Access to ResourcesNARPM provides its members with educational programs, legal updates, and networking opportunities, enabling property managers to handle any situation effectively and offer informed advice.Efficient Tenant ManagementNARPM property managers excel in tenant relations, from screening and lease agreements to conflict resolution and evictions, ensuring stable rental income and minimized vacancies.Legal ComplianceNARPM property managers are knowledgeable about landlord-tenant laws and regulations, ensuring compliance and protecting you from legal issues.Maintenance and RepairsNARPM managers have reliable contractor relationships, ensuring timely and cost-effective maintenance and repairs, along with regular property inspections.Time and Stress ManagementBy hiring a NARPM member, you delegate daily management tasks to a professional, saving time and reducing stress.Financial ManagementNARPM property managers handle rent collection, accounting, and financial reporting, providing detailed and accurate financial statements for informed decision-making.Marketing and Leasing ExpertiseNARPM managers use proven marketing techniques and platforms to attract and retain tenants, ensuring quick rentals at optimal rates.ConclusionChoosing a property manager is crucial for any landlord.

They are also self employed but showed low income (technically does not meet our monthly income requirements). 

The attorney fees would cost a lot more than the repair.This is why I tell landlords to stay away from arbitrage.

Should I deduct the cost from their security deposit or is it considered normal wear and tear?

Yes, someone has to pay for the total cost up front and then tenant reimburses them.

It depends on what your contract allows for ... and suing will take time and cost money.