The snow companies that are good can be really pricey and we have had issues with some of the smaller guys in past.

Honestly, it sounds like your current PM team has had issues from the start because onboarding four single-family properties should be a smooth and stress-free process when done correctly.A well-organized property management company should have a clear and efficient onboarding process that doesn’t leave you feeling overwhelmed.

I know conventional lending could become an issue depending on the condition of the property.

Unless you negotiate a new contract or addendum with your PMC, they do NOT have to abide by any requests/demands you make that contradict what's written in the management contract.If they have in fact NOT followed the terms of their contract, then you'll want to send them something in writing pointing out the specific language in their contract that they violated and ask what they plan to do about it.If they fail to correct or address the issues, then you'll want to start looking for a new PMC.

Our rep at Lendbase never called to apologize or ask if a prepayment penalty was an issue for us.

I ran into the same issue.

Are you aware of some actual legal authority that validates the IRS opinion on this issue?

.**** My current issue with the lender that I recently spoke with was that I had to have experience building a SFR on my own property and have sold or refinanced and held in order to be approved for the loan.

The challenge with S8 in this scenario is you always have a piano over your head and all a tenant has to do is call the code office to create an issue for you. 

Most STR markets have seasonality, and there are untold issues in the future that will effect cashflow.