There are no economies of scale to build one property on one lot either so it ends up being more expensive for the builder which means they have to sell at a higher price in order to make their desired profit and if your market doesnt support this, then builder loses money.

This is unfortunately the downside with hiring full-service property managers; you lose complete control of your unit and finances.

Are they putting down money as a down payment and do they have a primary residence they realize they could also lose if they do not pay you (depends on state). 

This is one of the classic fix and flip partnerships, but you shouldn't think of it as a partnership in the way your proposed it because you lose money on that deal.

They are just wasting water because it's free.the best scenario would be in unit washer/dryr hookup, but if it's going to cause damage, then not a viable option.You may lose $100 per month in rent, but will make some money with the machines and not have any additional work to run the plumbingGood luckGino

There were so many claims for snow damage last year that many HOA are losing their insurance or having to pay crazy amounts.

It was a great first project, I had some old friends reach out that were losing their house and I helped them get out from under the PML, bought the house and helped them repair their credit, got a contractor I knew that lived around the corner help me do a full gut rehab and put in about 1,500 hrs of my own labor into it.

Because not only do these capital loses from depreciation off set cash flow. 

Also to answer your question, I would not back out of the deal because of this or some other minor issue that can be easily fixed, it seems like you have all the financials thought and planned out, continue with it if possible and don't lose it because of that. 

I’ll need to set up a trust after renting it out I think (losing time at this point).