I break even, but i actually lose money on management fees. if I managed it myself I wouldn't be losing money., Lessons learned?

Instead, he seems focused on discouraging me from setting up an LLC due to the fees associated with California.

We have the option to to get you funded up to 75% and at 50% less origination fees, I would need to know your fico, and rental list.

I can pursue a legal action against the tenant or Baselane, but this will cost me additional $2-3K in legal fees besides dealing with a loss of at least $5K of rent and damages caused.

Our fees are not based on the profit or value of the project. 

Hypothetically, you'd need >2K rent on a 250K home to get more than 5% CoC (ballpark numbers with a few assumptions, mgmt fees, putting 30% down, etc), and it seems very unlikely this would exist where I'm looking..

Are they flat fees or percentages? 

If you elect a PPP shorter than 2-3 years in most cases, the lender is simply going to collect that fee A) upfront as points rather than as a PPP, or B) with yield, meaning a much higher rate.  

He paid monthly for 14 months until he forgot a check, got hit with a late fee, then paid the remaining 10 months in one check.He moved out at the end of his lease with no issues.Of course, this is the exception, not the norm.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.