They typically take a portion of whatever they save you as their fee.

From a transactional cost standpoint alone, the fees on the way in and on the way out require significant appreciation to break even.

Here are some of my takeaways from your budget:Operating Costs: Your STR management fee of 20% is high.

Cassidy Burns and BPG Residential Just curious. did you include your cost of sales, realtor fees, escrow, capital gains in your profit projection? 

Additional Fees. 

They’ve been solid investments, with rising rents and property appreciation, but over the last 2 years, skyrocketing HOA fees and stagnant value growth have reduced cash flow.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

Below are some actionable steps I plan to take after identifying a market:- find a rock star agent by referral and/or calling brokerages and asking to connect with their top producing agents- find a rock star contractor by referral and/or yelp- have control over construction by setting per diems to incentivize contractor to finish the project on time, within budget, and with good quality- leverage my rock star agent's time to check up on the construction process (checks and balances)- hire independent handymen/inspectors to check up on the construction process for a flat fee (checks and balances) There's competition everywhere, you won't escape that in any market. 

I do like the idea of a check and when she pays closing costs ($515) for the title company and I'll pay attorney fees I'll have her write a check and get a copy of it. 

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?