Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

As Chris mentioned, use a licensed servicer and let them handle it. 

My investors expect me to source financing for a deal and not retain a service to do what I am expect to do as part of my fees.

It seems like location would be especially critical with pad-split (and similar systems), but I’d love to hear your thoughts on what to watch out for in terms of zoning, safety, or demand.Also, I’ve traditionally rented out units the regular way, so I’m curious how screening tenants works for you with the pad-split (and similar) model.

Is the property just a regular-style house or something you can build an experience around?  

Craig, I'd be happy to review your docs and deal for you and get you to a servicer.

If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

When a PM does charge a markup, he's usually getting a discount on the service to keep the cost stable.

Do you have a 501c3 that you operate under (and rent the house from yourself), or do you purchase homes with an LLC or personal name, and run as a regular business? 

In Chicago it regularly dips below 32.