There are lenders that will finance newbies, even at 100% of the purchase & rehab, but if the numbers do not make sense, the chances of that deal getting to the table are thin (especially if the lender wants to help borrowers succeed, not help them fail).The lender's underwriter looks at every deal, but especially the lesser experienced operator's deal to determine what is exposed vs what is the return.

If you fail to follow the rules, you may open your personal assets to a lawsuit.

Your classic newbie move is to focus on one deal for three months and then when it fails, the pipeline is a clean as a newly dug PVC sewer line.

I am probably similar to you where I never want to retire but want to have the comfort to know if I fail pursuing a dream that it doesn't harm my children.

I have seen several fail due to lawsuits and insufficent coverage. 

A couple of questions to ask... do they lock you in for a year or can you terminate the agreement with not penalty if they fail to perform? 

Therefore, that fee is there to make sure that they are getting the job done the first time.Anyone who is saying that they can do a great PM job and won't charge you anything besides the monthly fee, is most likely going to fail out of the business because they won't make enough to stay in business, hire and grow.It is very important to understand all the fees associated with a PM, but I encourage you and your friend to not shy away from a company right away if you see they have fees on other things other than a monthly cut.

Nothing fails like success.3.

Didn't they already fail the criminal background check just by being an illegal immigrant?

STRs are saturated here and failed STRs are starting to saturate the MTR space.