I am looking for recommendations on a local property management company you would place your faith in.  

Here in Texas, the landlord is required to mitigate damages by making a good faith effort to find a new tenant.

There was likely a document you both signed to ‘work in good faith to correct any mistakes’.

But truth is that we have always operated in good faith with each other and a simple "handshake agreement" would work for us. 

I want to negotiate in good faith because I wanted the house but suddenly could not afford it. 

If you take the negative cash flow method and put faith into appreciation be prepared for a long time haul.

Putting down an EMD in good faith is one area you may need to spend money temporarily to lock a deal up, but otherwise the benefit of wholesaling is that it takes very little cash to get a deal done.

My plan: We are looking to try and get a loan form my grandfather for 100k and negotiating a interest rate of 10%+(he will probably go lower but offer high out of good faith), my thinking is buy single family homes flip them, we estimate we could do about 2-3 a year for the first year, and then invest our potential profits  in multi family homes and rent them out to get a cash flow and build equity.

Are they mostly charity or faith-based groups that offer housing support or something different? 

There's another exception for someone doing three of these in 12 months, but that has additional requirements, including a good faith effort to verify the borrower can make the payments.You really want to talk to an attorney.