It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

Old post but I figure I would comment here... my Company, Maven Cost Segregation has done studies on projects like this.

We can close on $50,000 to $50M (note a company doing multimillion dollar deals is not doing $50k deals)

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

Don't hire the first company that presents a lot of sleek Razzle dazzle.

Next to impossible without a property management company or a ton of experience in rehabs.

Quote from @Nick Am: @Brett SynickyAnswers and thoughts below in Bold--> I am trying to setup a management company (LLC-B) and charge LLC-A management fees.

Steadily has their own product (with multiple writing companies) and then they offer policies through other carriers just as an independent agency would. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I follow Dodd Frank, I use an RMLO, I have a title company close the sale and offer title insurance.