A lot of investors bleed money by making terrible mistakes as landlords.

It's probably the worst way to get started for most people and requires money for marketing to even make a dent.

You need it and you will make mistakes.

Clay tile is the worst.

I'm just afraid I am making another mistake and will waste another $5k.  

The LL is in the wrong and should pay for their mistake. 

These properties are currently being rented for a great amount with great cash flow.Most of the time, these properties are not in the worst condition, but they are not new either (I think about $10-20K in repairs needed) or even properties that have great tenants paying great rent in them.Now, if I analyze the MAO with the standard calculation (ARV * 0.7 - repairs - fee), it won't make sense for the seller, and he won't sell it (found out the hard way haha).What do you guys do in that situation?

Sure, but you made a few critical mistakes.1).

You are mistaking gross possible income with strategy.

Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.