Turn key companies at least the one's I fund do not buy property back and do not sell for others .. they will buy back but they will want to make the same profit... so they need to add in another fresh make ready or rehab.. ( their clients expect it remember its turn key)  the  cost to borrow the money from someone like me or a HML..

For my freshly renovated units I am getting between $700-$750 in "okay" neighborhoods on the city side.

Also, am I violating any law from a legal perspective?

Doing your first deal or partnering on a deal locally will give you that first hand perspective on what "something going wrong" would actually look like. 

Very curious to hear some of the different perspectives on this because I am looking to try and completely insulate my businesses from one another as well as from personal liabilities. 

Your plan of investing in 2-4 unit buildings in SD is a great strategy and I applaud you for your "numbers first" perspective (very few of the newer investors I come across figure out this mentality as quickly as you have appeared to).In regard to your question about the best way for someone without a RE license to access the MLS in SD; I think Sandicor's 'Client Connect' site will be your best option.

Then, I subtract my fee, which has been $5K every time, because anything more, in most cases, would be completely ridiculous from the seller's perspective (as if a 50% of market value offer wasn't ridiculous enough to them already), and anything less would make it hard to recoup my marketing dollars spent.  

Can you share some perspective on the market for hostels in the U.S.?

@John Woodrich I understand, however I'm providing a different perspective.

Let me put it in perspective, my partner tried to raise capital for hotel acquisitions through crowdfunding and the portals declined simply because they were not interested in crowdfunding hotels in general.