I will say for myself, I'm fine paying $X to install a faucet (for example), but when it is broken down into $A for travel, $B for labour...it bugs me-stupid, I know, but I'm being honest. 

We could spend all day hashing out whether brokers or nonbank lenders are better, but in reality, either is fine. 

In doing this you've likely committed fraud since your entire intention was always to close with the 2nd at 100% LTV...I've watched the video where Pace describes this and in essence he says that treating them as two separate transactions is fine and there's no need to tell the lender.

If you want to have one, fine, but they are unnecessary for a small business model like yours, just another expense as far as I'm concerned.

It seems crazy if I bought from an unrelated party, it would be fine. 

Now - I just noticed they are taking 18% of that (total payout)  which is inclusive of cleaning fee + nightly room fee (which is fine).

So far it's been fine.

Fees and violation fines incurred from tenant responsibilities are a different matter.

Be suspect of any and all unpermitted work.Older homes can be just fine or a nightmare depending on how it was maintained.

I can tell you Hard Money industry is doing just fine, especially now as rates fall.