It's really not hard, especially if you build out the hands-off system of DIY property management.I do something I call "self-service" property management.

What makes your system worth $1,000 per month when I can source better leads for free or through networking?"

Use a system that verifies actual bank deposits to confirm consistent income.Even though you’re out of state, you can still control the most important part of the process—who you allow into your property.

The goal of cost segregation is to identify and reclassify personal property assets to shorten depreciation times and increase your immediate tax deductions.Restaurants are uniquely positioned to leverage this strategy, as they are laden with assets that could be reclassified from long-lived property (depreciated over 39 years) to short-lived property (depreciated over five, 7, or 15 years).Some of the many assets that may qualify for reclassification include:Specific components of the HVAC system serving your kitchen and dining areasCommercial kitchen equipment, such as ovens, refrigerators and fryersSpecialized lighting fixturesThe full scope of potential savings can be explored through a cost segregation study.By accelerating depreciation deductions early on in restaurant ownership, you can reap significant tax savings and improve your cash flow as a result.

It sounds like he's leveraging the system to squeeze some money out of you, but at the end of the day, $5K might be the easier and cheaper route compared to months of legal battles and holding costs.

@Dani Beit-Or If I was an LP and learned one of the GP's believed it was necessary to implement systems that required two signatures for checks/payments over $1K, my immediate thought would be: Why does the person raising capital have such little confidence in the builder/partner?

Since you’re planning a mix of long-term and short-term rentals, keeping detailed records and setting up a solid system for managing finances early on will be key.

I paid about $1,500 for the installation of a high-quality 4-security-camera system, which can be monitored by both the tenants (and you!)

These are good ideas, it sounds like essentially creating my own PM system using part time employment. 

The pitch is always the same: "You need our system or you’ll never make it in this business."