I have some acquaintances that have wrapped DSCR Loans without any issues.

However, in this situation, it appears to be a pattern rather than a one-time issue.

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

Since Landlords are going to be monitored even more now with the price gouging issues surrounding the fires in LA, I would be extra cautious.

She’s currently not paying rent, and while she has some health issues and no stable income, she’s been communicative and open to general talks, with a possible option to vacate through a cash-for-keys arrangement, though this might take around six weeks and some hard work.I plan to rehab the property and eventually rent it out, potentially to a Section 8 tenant.

3) If their handyman can't handle a repair issue and they have to hire outside contractors, many PMC's will then charge a markup for their time - but they don't tell you this upfront or disclose in their management contract.

You may run into issues since it's a smaller loan. 

Of course it this becomes an issue for the property management company, they may chose to stop managing the property.- The owners don't share any of the equity growth with the management company.Drawbacks of Turnkey properties- They are usually purchased at market value (or sometimes just a little bit above) so that after paying closing costs the investor who purchased the turnkey investment has a lower net worth than before the purchase.- There is no discount or created equity over and above the amount that is used as the down payment for the home.- The management company charges a management fee of 10% - 15% which can be a little higher than average property management companies, but that cost may be offset by higher quality of services.- The management company also charges for other services such as fee for coordinating maintenance and repairs, and turnover and releasing.

The issue is: can the operator survive to that "long term".  

Separate issue is only 13% of CA homeowners pay for earthquake insurance because it's so expensive and the deductible can be really high.What are your re-building costs in your area?