Didn't have a chance to see the properties because already had a buyer.

Most new construction in my area don't come with backyard landscaping, just bare dirt and weeds.Also, building new construction in California has so many fees and regulations that it doesn't pencil out

Screen everyone and you will decrease your chances of this happening. 

If you have a 4 Bedroom, chances are, the renters would have children, and a yard would be more interesting then if you were to rent a 1 Bedroom to an individual.

Businesses with that mindset will have a much better chance of sticking around.

Since this is your first time, thus being your highest percentage chance of making costly mistakes, you should be looking for greater estimated cash flow.  

Bank auctions were my best chances at picking homes cash with high equity.

Are you in the state of Florida by chance?  

.-  Given the return on the loan, and the possible chance this is not a Business loan, does it matter if I classify the $3k as an Equity portion to avoid exceeding usury laws (I know these are state specific)? 

Propertymgt llc has probably no money to distribute to you as with only $50 management fee it should barely cover its own overhead.