Either your sister is confused, you misunderstood what she said, or she is trying to coerce you into paying her PM fees.

Water looked like "Fear Factor "Liability times 1000.Between tenants what a nightmare!!!

In most cases, the owner/possible seller would want an option fee paid up front to entice them to entering into the option to purchase agreement, so assuming that is the case, would enter into the agreement with a pretty firm plan to purchase and not lose that option fee. 

Realtors can compete on commissions, or even offer a flat fee transactional rate for service. 

If you can definitively prove that the seller intended to deceive you about the square footage for their personal gain, you may be able to take legal action, but probably low chance of success considering you had ample opportunity to measure the home or get an appraisal with measurements prior to closing, and had your chance to negotiate the price based on square footage and all other factors prior to closing. 

Expenses naturally rise with inflation - insurance, property tax, utilities...Those two factors, by definition, result in lower NOI down the road than in-place/year 1 NOI.

Along with the FHA loan, check out the loan from the Neighborhood Assistance Corporation of America (NACA).NACA was formed in 1988 and provides an affordable option for potential first-time buyers:✅ No down payment✅ No closing costs or fees✅ No mortgage insurance✅ No consideration of credit score✅ Below market fixed interest rateThere are several requirements to be eligible, starting with attending one of their workshops.https://www.naca.comI wish you all the best.

Depending on the location, 80% LTV as a Rate & Term refi should be no problem and 80% as a cash out is possible but would depend on the other deal factors.

Where do property management fees go on IRS form 8825?

Your own money no one is charging you any fees.