You do not need a property manager if you have fewer than 10 rentals.

Okay just thought I'd share that but I'm way off subject- So after that discussion, I asked for his personal opinion on asbestos and how he feels about the dangers of removing it.

If he chooses not to then you can't be blamed for keeping him in a dangerous situation.I would also call the neighborhood police precinct yourself and talk to them about the situation, if you haven't already.

There are definitely fewer homes that cash flow in the Sacramento area than a year ago.

have the renter pay for the first $100 of any repairsIf the repair is under $100 - they should find a repairman and fix it themselves.I think this is quite dangerous to your property.  

SIX years is getting dangerously close, in most states, to a property being offered up at a "tax deed auction".  

Their reasoning was that potential tenants with pets have fewer options, are willing to pay higher rents, and may stay longer.

You probably can find decent tenants in that area, but may be fewer and further between.

Landlords with fewer than 10 rental units shall deposit money in an interest-bearing account at prevailing rates and insured by the federal government.

My real question:  Perspective tenant has service animal that is a "dangerous breed".