Unfortunately, not many around like that...The appraisal is about $150-$200 higher than standard cost because they likely went through an appraisal management company ("AMC") to get the appraisal ordered/assigned.

One of the biggest factors in successful flips is building a strong team: contractors, agents, lenders, and property managers. 

First things first, when assessing property managers, it is crucial to prioritize their ability to collect rent and manage delinquencies.

You may get EXTREMELY lucky and find one for 15% (if they get approval from management), but you will not find one for 5%. 

Your parents can look to reinvest the remaining proceeds into a DST, tenancy in common investment, NNN, that are passively managed.

Do you think that is fair - to be forced to pay for your manager's mistake?

we are still assessing the rentals we manage but overall are just finding a few minor issues so far. 

I am planning to self manage as well and since there aren't many managers in my area I will likely employ a similar strategy once I decide to outsource the management.

@Kevin Wood: Fixed Asset Management module is included in the QuickBooks Accountant version where you can calculate the depreciation.

What I can share is that the risk-reward will not be worth it as a 'newbie' due to your limited capital and inability to actively manage your properties.