While it may seem like a high fee you'd be hard placed to replace those services with a paid employee and do better than you're paying now.My problem with the deal is the $5,000 setup fee.

You will have employees, customers, stakeholders in investors.  

But it’s been a great business for us with minimal risk, a good return, and no need to please investors or manage employees!!!

We also see the struggles you face:Disgruntled customers due to communication breakdowns and scheduling mishaps.Frustrated employees missing deadlines because of complex systems.Recurring service issues stemming from a lack of standardized procedures.Unhappy technicians dealing with unclear pay structures and disputes.The constant threat of legal and financial trouble from non-compliance.You wear many hats, and there just aren't enough hours in the day.

Other hidden costs you need to consider when evaluating HM lenders:-Applications Fees-Administrative Fees,-Commitment Fees-Underwriting Fees-Origination Fees-Loan Servicing-Rehab Draw Fees-Inspection Fees-Interest paid on undrawn rehab budget?

Hey BryceI have been in a similar situation when evaluating a deal. 

Most real estate projects today are either not achieving their preferred return in cash flow or may not achieve this bench mark for the first three, four or even five years -- at this point, there may also be accrued preferred return that would have to be caught up.As a fund manager, what other asset classes are you evaluating to help increase cash flow for both your investors AND yourself?

Third Financial Preparation Evaluate your budget, savings, and credit score.

Make sure they are a responsible employee.

Material Participation Activities:Property Maintenance: Engage in repairs or construction work on the property to maintain or enhance its condition.Contractor Management: Oversee the hiring and coordination of contractors or handymen for property-related tasks.Tenant Interaction: Communicate with tenants regarding lease agreements, inquiries, or property issues.Property Acquisition: Invest time in property search and evaluation processes, including visits to potential investment properties.Property Management Tasks: Perform activities typically handled by property management companies, such as rent collection or property inspections.Non-Qualifying Activities:Educational Pursuits: Time spent on real estate education or training programs does not count towards material participation.Investor Hours: Hours dedicated to investment analysis, financial planning, or portfolio management are not considered material participation.