They are one of the few PM companies I've encountered that know what they are doing to make a profit on the management side.

So these realtors, who are not lenders and have often never read a single loan program guideline in their entire life, convince sellers that the home "cannot" be lent on using FHA.And then you encounter what you are now encountering as a buyer. 

If there were then you may encounter more problems than you thought with the eviction, because bedbug issues are fairly untested in the court systems and they seem to occupy a somewhat special legal space as far as pest control issues go.  

After purchasing our first two rentals, we tried to buy our own house 30 mins south of SF, only to get the sticker shock of $800K for a 2bed/1bath, 1200 sq. ft, 1950s house. 

I walked a couple of investors a few weeks ago when I started to try to penetrate the residential market, there are three issues that I encountered, 1) most of them don't know what they want, not even a floor plan with scope of work, which renders the bids from us contractors like comparing an orange, an apple and a rotten grape. 2) They want the best contractor with the cheapest price, the best quality and to be done yesterday.

My first "encounter" with real estate investing was around 2004 when I read "Rich Dad Poor Dad", but I was living in the middle of nowhere at the time and then family obligations put things on hold for me. 

If you do enough deals, in time, you will encounter people who cause trouble.

I'm not clear what sort of paperwork overload you're encountering with just one property - is there something particularly unique about this property or is it just the initial "getting started" stuff that you may not need to repeat too often?

At some point we will encounter a correction but I would not gamble on it being imminent.  

What a great idea @Alex, do you have stickers saying the house has security as well?