If I may, a lot of the issues we are running into with insurance is that consumers no longer use insurance as a catastrophic fall back but rather, they nickel and dime on small claims that compund into larger issues. 

It is such a common practice for these management software companies to charge these fees, so I assume it is not an issue, especially since they are a third party and the fees cover more than just the credit checks.Any insight is helpful!

Now I can see some builders having an issue with comps.. but other than that its crazy to take these funds as income and then pay tax and plow it right back in.. 

Is there any state statute dealing with this issue?

Your biggest issue is that $50k may not let you get a nice house and have any reserves.

They have addressed the issue of depreciation of components, but not the actual methodology of the study.

But the biggest issue is not being signed into both this account and my own at the same time.

They’re making sure they are aware of anything bad happening or issues they need to be aware of.

With this in mind, if you intend to leverage short-term debt (hard money), it's even more vital that your underwriting is thorough and that you have the correct systems in place to tackle potential issues.

Things can and will go bad, but once there is enough monthly cash flow generated it will be extremely difficult for that one big issue to put us away or even 2-3 big issues all at once.