My labor costs are minimal in rehabbing/maintaining and managing our rental properies and the returns are awesome.

To increase cash flow you will need to turn over tenants every 2-3 years to maintain rents at market rate. 

You're not responsible for fixing every little thing, you're responsible for providing a habitable place and getting things fixed as needed to maintain that.Helpful hint, charge extra per mo and get a weekly or at least biweekly maid to keep up the common spaces.

If that checks out with perfect on time rent I would consider tenant A.

I am local to Vancouver, WA and a full time real estate professional focusing on property management of single family homes. 

Took freshmen year of college off from working because I was worried about maintaining my scholarship's gpa but worked in the school's post office and daycare other years.

I don't know if most/any of your improvements are going to raise your rents, but they will certainly make your units easier to rent and more likely to maintain higher quality tenants.

My understanding is you live in your primary home and rent the other unit, just looking at your housing situation I don't see a need for LLC, since you live and maintain the home. 

You could locate your office in your living place if you can close it off and have a minimum of distractions, especially if they are  personal.Try to maintain control of the things you are responsible for.  

Alex Dem,Welcome to BP – be careful, you may want to hook your computer up to a timer that shuts it down after 3-4 hours because it becomes addicting!