You could see an attorney or even better talk about it with your financial planner many have legal tech now that makes it essentially frictionless to get your estate work done and keep it updated.  

Most of the PM work is done on the first 3 months of the management, then we can recoup our expenses. 2. this Is legally required.

It is right on the fringe of being legal/illegal, and lawmakers have been talking about how to regulate it for years because it can be a dangerous process that leaves end Buyers feeling like they weren't represented.....especially when they see the closing statement and find out how much the wholesaler made just by getting to the Seller first. 

Additionally, involve a real estate attorney to ensure the transaction aligns with legal requirements and protects both parties’ interests.

They could make legal arguments about hardship and/or off-sets for non-compliance by landlord, but this would require posting rent or coming even with rent.

Are there other legal or financial consequences I should be aware of?

Consider balancing liability protection with administrative costs, and consult with a CPA to align your structure with your financial and legal goals.This post does not create a CPA-Client relationship.

The last two hours were with the legal team at MR and they confirmed there can be no other up front charges beyond the one month’s rent cap.

@Alvin Sylvain I agree the emotional support animals are B.S. but they are legal and we have to abide by the law.If the animal is an ESA, you are allowed to ask if the person is disabled and what service the animal provides.

Is it legal to offer to rent the property back to the homeowner who already lost their home to foreclosure when negotiating the redemption rights purchase?