I do what I promise to do as a landlord if not more and I understand how to protect my interests if things go sideways.

If you are concerned about protecting yourself, just buy an umbrella insurance policy for $1 million.I'm not sure why you're concerned about liability?

Servicers can help and hurt you but are there really to protect you. 

Why don't they provide police protection and enforce basic laws instead of price gouge landlords providing basic human services?

Above all, protect your principal.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Some ego on all sides creeping through to protect ones own interests (which isn't a bad thing by itself, it can just be dangerous over the long-run) that may be making the convo even more challenging to resolve. 

A key factor to a C4D seller is how there asset is being protected, so they have assurances that value remains regardless of your performance. 

Definitely hire a real estate attorney to draft or review any seller financing agreement to protect your interests.Ask the real estate attorney how to handle the POA situation...can you talk with any of the other property owners who are short term renting out their properties to see what/if they have any issues? 

I've done these deals and we have been able to renegotiate price and terms late in the deal, all while my client's EMD is fully protected either based on an inspection period or based on lack of disclosure.