This ain't bad lookin'!

When you pay cash for a $400,000 home and rent it out, your rate of return will likely be less than 6%.You could invest in stocks and earn 7% or better.You could put the money in a high-interest savings account and earn up to 5%.I don't understand why anyone would pay cash for real estate, erasing many benefits that increase the rate of return, while exposing themselves to the risk of loss (turnover costs, bad tenants, capex, etc.). 

Yes, there are many out there that do it and nothing bad has ever happened, and I say kudos to that, I just would never do that.

You can measure the success of the brokerage by the number of agents that leave after a few years, to start their own brokerage, and whom become successful (some just leave because it's bad and try it on their own and never quite get it).

If the proforma has the rent roll at $1400 a month, there is a discrepancy that could lead you into a bad assumption on your business plan.Also one caveat, be aware of physical delineations around the area like bridges or railroad tracks or a canal. 

Somehow they bury bad reviews on google with great reviews.For clarity, I own DealMachine (not batchleads... totally different companies).

@Kristen SnedekerDid you find a good PM or even a bad one for others to know about?

Others have little/no experience and will give you bad advice that takes you down the wrong path.I recommend you focus on educating yourself while saving more money. 

You may have to search a bit for the right contractor or engineer - sometimes I see one solution dominating in an area - "that is how we always do it"  Thanks for the input - yes, it sounds like the specific area this house is in is particularly bad for foundation issues.  

They want to ensure against potentially lending on a property which may be destroyed/badly damaged.