Even if i fail, I'd still like to try because i dont want to regret it and whatever i need to do to fight my way to financial freedom, or least start, id be willing to do.

Investor B has the same $100K to invest and decides to purchase two "C" neighborhood single family homes and successfully completes the BRRRR process and then takes the same $100k completing the process a second time and in total has 4 single family homes in a "C" neighborhood with the initial $100K back in their bank account.Who is the most  successful if the hypothetical ends here?

It is painful to do this even with lots of equity as it is not "bread and butter" for a bank.

Therefore, that fee is there to make sure that they are getting the job done the first time.Anyone who is saying that they can do a great PM job and won't charge you anything besides the monthly fee, is most likely going to fail out of the business because they won't make enough to stay in business, hire and grow.It is very important to understand all the fees associated with a PM, but I encourage you and your friend to not shy away from a company right away if you see they have fees on other things other than a monthly cut.

From what I understand so far, the bank will place the first bid at what the current owners still owe (the 58k).  

I ended up owning about 250 of these.. and having to sell them off taking loss's virtually everyone of them it was a blood bath for us HML in 08 to 2010.. and not anything I want to ever repeat.. those that started lending HM post 2011 have had the rising tide great market situation but even with the good market people fail all the time for various reasons. 

Does anyone know any local banks who would do this? 

STRs are saturated here and failed STRs are starting to saturate the MTR space. 

That is usually confirmation from your banker, your bank account with the account number redacted or a letter from your lender. 

If you want to point the finger, we can blame the Fed for holding rates low for so long, and the govt for printing 5 T, making money real cheap and allowing these NY investors to over pay on the real estate.I guess you have to wait until the banks take these assets back.