'Sophisticated' isn't always the best way to go.

@Eric Armstrong  I think it would be a hard sell to most folks as they are not sophisticated enough to understand the various documents you may need to secure yourself.depending on the state you could simply do the work and put a mechanics lien on the property..

You want full disclosure, complete transparency and operator who has the sophistication to accommodate and communicate with far reaching clients.

The beginners needs to learn property management themselves to keep expenses down and stands a better chance of surviving without a permanent pm on the payroll.  

You'll need a lawyer to draft the operating agreement.My recommendation is talk to a good asset protection, real estate investing attorney and sophisticated investors to understand what you are doing and the risks and the protections--part of just being educated.

I have a draftsperson on payroll, an unlicensed architect.

Its not as sophisticated as Appfolio but they do have great customer service and their web-based software does the job.If your PM is doing a good job I would really stick with them. 7% is a good rate and like you said the software will only streamline processing new tenants, advertising for vacancies, and getting maintenance requests but it won't eliminate the need to do showings and respond to calls.

I've created multiple sophisticated marketing funnels based on legal, government and real estate Pro's.Leaving your marketing to others is not my idea of assured success. 

Some people have wells that have run dry and despite the sophistication of the plumbing system they turn the knob and get mud.  

If you are planning to issue securities, the SEC is usually somewhat extremely emotional about the issuer ascertaining that the offer is only to accredited or sophisticated investors.Although some securities may be exempt from registration, open solicitation however typically requires the issuer to both register the security with the SEC and also comply with whatever specific stipulations that they deem necessary in order to solicit openly.