I would suggest you up your rate from 8% to 10% to help off-set some of that cost. 10% is doable all day long here in Texas.

How do you approach educating people on the realities of the business? 

I have not paid retail for RE in many years and would not in my high cost market (average SFH is ~$1m).  

-Transfer the property into an LLC – This may allow me to take ownership while potentially avoiding property tax reassessment, however this sounds like an involved process-Establish a living trust for my aunt and mother – The trust would specify that I inherit the property upon their passing and provide step up in cost basis but i'm worried that the living trust can be modified to have me removed (who knows what can happen) - My mother is somewhat volatile.I would like to live in the property and my mother will live in her second property with her husband. 

Does the cost per sqft account for electric and plumbing? 

Best of luck on your journey, and remember, delayed gratification is your best friend in this business!

Most businesses, property management or not, fail due to the lack of sales, not due to the lack of systems and phone etiquette.

They have been managing fine, although not too busy, I guess because of the market.

But I agree with you these guys pass up a ton of listing opportunities and given the amount of money they spend thats just wasting marketing dollars in my mind.. the laws are changing on wholesale assignment business model.. like most things RE its always changing and evolving. 

Sounds like you need to have a relationship with a couple of good contractors, 40k for vinyl siding sounds high, what was the material cost.