Hey All,I am seeking advice on the proper way to charge back my borrower on a seller finance deal in which the borrower has allowed the insurance to lapse.

Not a bad idea at all!

Are there any downsides to this idea?

If you are trying to do them yourself and continuously fall behind, it might be a good idea to look into hiring a bookkeeper.

Regarding contractors ... it's best to use one that has been properly educated on the 203k and financially vetted ensuring their financials can support the requirements of the 203k.

It sounds like you both have educated yourselves properly, which is great hear!  

That's not a bad idea.

The idea is to make sure investors have a great experience and do another transaction with us as that's where our profits are generally generated.Because we view it from that respect, we operate the PM at basically break even (enough to pay our employees).

You're just going to have to either commit to the idea that you're going to leave 80k behind, or leave it all be and raise new capital.Can you redeploy the capital elsewhere to earn more than 8%?

This is why it is important to make sure your day to day operations are run properly and every vendor who performs work at your property and /or on behalf of you is properly insured and you are added as additional insured under their policy (not merely a certificate holder).