@Matt Fischer, It's the deep end of the pool and incredibly complex (and translate that expensive) process that the IRS isnt entirely on board with yet.   

A bit paranoid I know, but life/real estate is already complicated enough, and this is basically a long-term relationship and physical alteration affecting the property.

That will translate into Common Charge increases. 

Translation: We'll be selling bonds on the secondary market that are secured to mortgages underwritten to Fannie/Freddie guidelines but not sold to Fannie/Freddie. 

My dilemma is, the sale price is 500k which translates to about 132k in capital to purchase it.

That opens the door for a judge to start thinking about "alter ego" theories and "piercing the veil" from an asset protection perspective. 

I suppose thats just numbers that are translatable to any lender, though, and that you are recommending that someone local to the properties with a track record for closing similar deals in same market is the way to go.

I charge a fee any time the tenant wants to alter the agreement.

TRANSLATION: I don't want to invest the time into going over management contracts myself or pay for an attorney to do so, but when I get screwed by this PMC over something not covered in their shorter contract, I will post online that all property managers are crooks.

In general you can invest in real estate in a few different ways in the US (probably some of this translates to other markets).Purchase a property yourself, using all cash or using cash+loanInvest in real estate with a small partnership (like the friends you have in PA)Invest in large partnerships (like Trusts, Funds, and Syndications)At $40k you'll have some good options to invest primarily in the small partnership structures or in large partnerships.