The new PM did initiate the transfer of service and reached out to the tenants, but since the existing PM hasn't confirmed the transfer to them, they're understandably suspicious. 

From what I understand, a 1031 exchange doesnt apply in this case, and so I will have to pay short term capital gains on the appreciation ?

As a result, I would spend more time trying to understand who they are partnering with than anything else.  

Make sure you have a solid understanding of the revenue and expenses and that you are able to verify everything.

When I was in your exact situation looking for help, they were the only ones that provided solid answers and walked my wife and I through the full transaction.

@Brandon Croucier is giving you solid info on finding an experienced and honest mortgage broker who can shop your exact scenario both ways, with the rehab and without and break down the benefits of each with all fees so you can see an apples to apples comparison. 

Shenell, It's great to hear someone may actually understand what we're trying to accomplish.

My other SFR notes have interest rates determined by the borrower's cash, credit score and income - so market rates or higher.I understand the difference in performing vs non-performing notes and that performing can become non-performing pretty easily. 

I understand this is a good way to become financially secure over time and am eager to start.  

If a newbie doesn't know how to do basic due diligence on an investment, they also don't know how to do due diligence on a coach or how to evaluate a coaching contract to understand exactly what the student will receive for their money.