@Mark Enis I'll let the other experts chime in, but my understanding with a conventional mortgage, they don't want any part of the deal to be borrowed funds. 

You definitely have some options, if you do a more conventional second you can get very reasonable rates, maybe check in with you current bank or credit union? 

@Ryan Cleary I used a 5% down conventional loan.

NonQM loans aren't as regimented as conventional/govt, but the investors are much less likely to budge when there are red flags, such as a significant difference between two appraisals.

I just want to know if there is an industry standard or convention in this situation for how these things are divided up between the PMC and on-site management.

Is this a conventional loan?

It has been a mix of 1 Conventional, 2 DSCR, 1 Seller Finance, 1 Cash out Refi and 1 Fix and hold. 

Real Estate Update Here's the latest market report (based on single family homes): Mortgage Rates:30-year conventional rate today is 7.15%30-year VA rate today is 6.65% Median Sales Price:March: $475,000April: $476,000May: $475,995 New Listings:March: 1,845April: 1,957May: 2,099 Median Days on Market Until Sale:March: 16April: 12May: 13 Months Supply of Inventory:March: 1.9April: 2.2May: 2.2 What does "Months Supply of Inventory" mean?

About 1.5 years ago, I purchased (conventional loan) and have been living in a 3x3.5 townhouse with a family member (brother) in a first attempt to start building equity through a house hack/BRRR strategy. 

A successful BRRRR without the tailwind of market appreciation during the renovation period is really, really hard unless you have cash to buy a place that does not qualify for conventional financing, ways to source off market deals with some real issues that you don't mind taking on, and/or access to a crew or cheap labor (could be DIY).