So prompt responses to inquiries generally get the bookings.  

@Robert NelsonI Did a condo as one of my first investmentsPros - 1. little maintenance to responsible for.2.

A good real estate accountant can save them thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend that they find a tax accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.I would also recommend that they look for a accountant willing to work with them throughout the year, who can help them strategize and who is responsive when they want to know the consequences of the financial decisions they are making throughout the year.Good luck.

It is 100% the buyer's / investor's responsibility to do Solid Due Diligence before purchase. 

That being said, I asked an attorney who I’m an acquaintance of about this very thing, just for my own curiosity, and his response was get the LLC in whatever state the property is in.

I don't know how that business could survive long-term with such low rates.If those numbers are accurate and you can net $38,000 a year, then it's worth holding onto.

Here are my responses to your questions1) Not my area of expertise, but the numbers on this are very strong2) I'd generally lean towards building the CFM, but strategically selling some properties when someone gives you a offer you can't refuse.3) Most HMLs would lend you 75%-85% of your purchases prices plus up to 100% of the rehab costs (though some HMLs like to see the rehab costs at or below the purchase price).

Response "Oh, yeah.. these are long-term rentals and yeah, why did they go 20 miles out..."

What I do see is that a strong screening process improves your chances of getting a responsible resident. 

Could it attract squatters, or is it the right move for responsible property management?