I think some of this is fairly normal for new investors and a lot of it will come out in the wash in 10-15 years anyway.

Here is what I proposed:Setup fees : Administration Setup:One Time Fee: $400Guidebook: Using professional photos give the guests a professional tour of the house and how the home works (Wifi passwords // How to use grill // How to use propane fireplace // Hot tub instructions // Sauna instructions //Check in and check out instructions //where extras may be storedOTA (Online Travel Agency) setups: taking professional photos and actively updating your listing on popular platforms;PMS (Property Management System) Setup Smart Pricing Set upWebsite integrationOther (furniture arrangement / design / décor shopping and set up) $50 per hour· Placement fees · Marketing Cost: Variable depending on needs/wants for marketingFacebook AdsGoogle Ads Cleaners: Set up procedures/take pics of expectations· Management fee—30%Guest communicationCleaner communicationSetting Rental rateDealing with small maintenance issuesBooking CoordinationSmart Lock integrationKeeping supplies stocked (TP, paper towel, all cleaning products, coffee, filters, creamer, sugars, teas,)(Receipts would be submitted on a monthly basis for either reimbursement or book keeping purposes)Encouraging guests to leave good reviews by periodically checking in, providing a review template, and ensuring guests receive the amenities they are looking forContinued marketingMajor Maintenance fees—OwnerCleaning and laundry services fees: Cleaning fee to the guest depending on how cleaner wants to charge

Have been looking into Commercial Retail shops, laundry mats, etc. but I am a bit unsure how much I could "purchase" with my current cashflow/down payment.

How important are factors like high-speed internet, furnished common areas, security features, and in-unit laundry to these tenants?

Natural market cycles are a good thing because it washes out the low performers- seems like this is what is happening?

Sorry, we’re not going to The French Laundry.

If you have a 4 bedroom, 2 bath SFR, and suddenly you can rent to 8 people, not only are you asking for 8 cars around 1 property, but you'll have 4 people using 1 bathroom,  you'll have 8 people sharing 1 kitchen, 8 people sharing 1 laundry room, 8 people sharing 1 or two living rooms.

When I called the owner and told him who I was, he said he was actually thinking about calling me to see if I would be interested in managing the property for him.

Laundry list of deferred maintenance, looked like total slumlord status:   I cancelled escrow today.  

Once I explain our process, the relief that washes over them is magical.Here's how we handle it:We charge an admin fee for breaking the lease.The tenant remains responsible for rent and utilities until a new tenant moves in.We take on the burden of marketing, showing the property, and screening new tenants.