@Adria T. the PM company has to communicate, get a tenant in quickly and be able to handle items that are unforeseen..

Am I thinking of converting this property for SRO/PadSplit model where refinancing may be harder to do because of property improvements I have made?

Also, you'll eventually have cap ex (big items) to pay for and those costs are only going in one direction, up. 

An old tv infomercial championed you to get rich quick and sit on the fan tail of a Luxury yacht sipping a tall cool drink surrounded by swimsuit clad models.

I have a building that I recently modeled.

Brokerages may need to adjust their business models, which could open up opportunities for cost-efficient, flat-fee models or other discount real estate services.

But obviously, we have spent the better part of 20 years on the buyer's side of the table, so we are looking for some general advice, tips/tricks, or even the pitfalls of setting up a hard money lending arm to augment our current business model. 

I assume you keep the capital gains/depreciation itemized.

I would say look at the big ticket items, roof, foundation, electric, plumbing, HVAC and assess from there if anything needs to be done 

And make sure that all items necessary for you to get the best rate possible from your carrier (like 4 point inspections, roof attachment points, pool enclosures etc) are present or available.One nasty little factor that can't be helped is that every time you buy a property for more than than last owner paid - you will have a tax bump due to re-assessment.