So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

Not only does the buyer still have to pay full price, appraisal fees, inspection fees, etc. now they have to pay their own broker. 

By the time we paid the legal fees to our lawyer to do the conversion and the reduction in the balance of the loan took a major loss. 

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

Possible, yes, but you'll be looking at $5k-$6k in lender fees plus title fees, prepaids and escrows and a higher rate. $75k is a little easier to find and slightly lower rates/fees. 

With a mortgage of ~3.2k and monthly fees/taxes/maintenance being about 1k, it looks like these properties would turn a cash profit in the first year. 

We use my construction team and my property management team, and I DO NOT charge myself agency fee's. 

I ran the numbers for any investment below 250k and for the 3 year hold period after 1% annual management fee and 1.25% startup fee, and the profit split, comes to 10% compounded return or an 11.2% avg annual return on a 1.33 EQM on 3 years.

It is a yearly fee, paid to a private company.

do you mean they want you to pay some of their fee' s up front..