They typically have minimal assets to go after if they place a tenant that causes damage or refuses to vacate.- the risks to the owner do not seem to justify the upside.From the arbitrager perspective, I also question if it makes sense

Neighborhood and appraisers were taking comps from half a mile out that would cause the value of the property to go up substantially.

This means that the IRS would consider you to have withdrawn the entire amount of the IRA causing you to get hit with taxes and penalties on the entire amount of the IRA. 

Simpler the better is probably the right answer for most people early on.From your experience, what’s the most common thing that actually causes problems at tax time for small landlords?

You listed a few things that is slowing you down or causing it harder to scale. 

Being an agent gives me access to the market, to transactions, to buyers and sellers, to investors and can generate (especially being in LA) excellent income, so the two things work really well in tandem in those cases.Certainly no harm getting your license, but I just don't think there's a great need to, unless you plan to use it actively.

Getting the right tenant from the start who is properly screened, eliminates a huge percentage of the issues that cause self-management to fail.Once you have a well-vetted tenant, clear systems for rent collection and communicationand a reliable handyman for repairs, I think self-managing is very doable for in-state investors with four or fewer properties.

What are you defining as "bad" credit, and what caused the issues?

- No time- Don't want to invest the time learning- Afraid of making a mistake that could cause thousands of dollars of damage to the engine- Don't want to get their hands dirtyTo DIY landlord or not is a similar thought process.

There is a 90% chance it will cause damage in your family.