We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

There are companies such as Cover that offers a full service ADU deliverable from design through construction completion.

I would focus on saving enough money that if I had a deal go bad, then that money I saved was there to cover it. 

So, he's claiming the home warranty won't cover... fine, what's the repair cost?  

There is way more things that can be covered and any attorney can correct me on here, but these are the ways we understand how to make it work.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Double check any cap ex you might have coming in the next year or more there so you can plan to set that aside (boilers, roofs, etc).

I think Peter covered the best course of action.

This is the percentage of costs (purchase and rehab) covered by the loan.

You can be told one thing & the PM can continue to cover it up without your knowledge.