Questions to Ask Lenders:Loan Costs: What are the closing costs and fees?

Could be a realtor or other vendors who want to earn a fee for the service. 

Second, your tax prep fees would increase dramatically.

Once the initial 3-month learning period ends, you're essentially on your own unless you can continue to afford the $500 monthly fee.

Are you captive to the building HOA for increasing fees?

McElhannon: Wouldn't all the other 17 years of expenses (taxes, maintenance, fees, etc)  also be deducted from the price and not just depreciation? 

Then it's 8.5% and a 1.5% referral fee (if I get my friends to help fund his deals).

All that's left is deed prep, notary fees and other misc. fees which fluctuate very minimally. 

Long vacancies (6 months+), ridiculous turn times and costs, surprise add-on fees, several days to answer questions, and then responses incomplete.   

I can only see the benefit of forming a self performing property management company if you believe you can be more effective on cost and service than the local 3rd property operators and even cost can be tricky to calculate because most focus on the management fee that's charged rather than the cost to put out fires when they do arise.