Both answers are correct.

This is correct, so I would disclose every aspect of the sub to and how it relates to the seller, perhaps going so far as to insisting the seller sign off on an acknowledgment that he understands the ramifications.  

I'm going off the understanding that you still need to spend 500+ hours in the business to achieve material participation (please correct me if I'm wrong). 

Maybe the P trap under the sink is not filling with water correctly and allowing sewer gas to come back in.  

Asking in the correct forum will get a better response.Read the RULES!

I'd estimate your cash flow after you pay the loan payment would be $600-$800, which a lender that understands investment real estate should give you some credit for on your DTI.As for a bank, I have a specific lender at NBI that I would recommend.That 600-800 you are factoring in the HELOC repayment each month too, correct?  

The "correct" way I'm assuming you're referring to.

And this is why I'm trying to take the necessary steps to correct this poor behavior and joining this platform to get some input/knowledge/guidance/advice.

Your local agent did not do you any favors unless he described the property as Jordan correctly did above.

I found similar patterns between all 5 companies: namely, they had taken on too many units, were over-charging me for things I didn't need, and weren't handling issues correctly (they would send out vendors who didn't know what they were doing, mis-diagnose issues etc.)No disrespect to the PMs on this chain or BP in general, but any third-party manager won't perform exactly the way you would like them to simply because of the constraints they are faced with as far as having so many units and owners to keep tabs on.