Now this company went one step further and recorded owner carry contracts to the end buyer  so more of a wrap program.. well those buyers started to default.. and since this team had the wrap they needed to pay the underlying and well it was a house of cards.. once they had 10 to 15% vacancy or non pay they could no longer debt service the underlying and now the original owners were getting notices of default.. and then they start filing complaints at the AD.. and well it becomes a scheme to the state..

I'm told there is a way to ask the seller (who's carrying the loan) to take a second position, along with a second on the new motel property, to let new lender come in first by refinancing or cross collaterlizing the multi family?

Don't split the two properties with two companies, sign up with the right company.Find a property management company that thinks like you do @Kit Klekamp One who will carry out your idea of what it is to be 'properly managed'. 

I'm in the West end of Allentown right now and I still carry the label of tenant.

Your name is still on the original loan, even though your name may be off titlenow, so that should Not have helped your DTI.I always discourage people from doing shady, mtg fraud related actions,  it barring you stating you Will sell, or have already sold, I’d explore putting the title back like it was, and carry on.

I do use a cc to lower my carry costs.

If you chose to keep the contracting “at arm’s length” and avoid any future liabilities, then verify/hire your contractors and don’t bring them in-house and be clear about their roles and responsibilities beyond the Scope of Work.I think it’s also important to know for all of us here at BP that the word “contractor” carries a lot of weight and means very different things to different people, none of them incorrect.

That takes guts to go up and talk to a previous home owner while carrying guns.  

Thanks @John Woodrich -- yeah I ran into a few things and realized quickly how larger homes carry exponentially more over-run risk. 

But he did end up with a significant carry fwd loss.We got it cash, no conditions, close in 30.