Sure if they handled all the paper work for the sale, but my guess is the PM did nothing related to the sale (other than placing a tenant, not finding a buyer).For most, the contract is signed and the PM manages it for years with automatic renewals where no new contract is signed. 

Less paperwork, no up-front PMI, and monthly PMI drops when you hit 78-80% LTV.

You’ll find the necessary costs of LLC formation like $200 state fee and how much it would cost to get your paper work processed, and the paperwork you would need.I dont know who you would use or go to but maybe that website could help point you in some direction...

After all the paperwork, applying for the heloc, and running Comps close to my property i was expecting at a low range appraisal to come in at 305,00ish give or take.

Take LOTS of pictures and email them to the Housing worker and keep all paperwork. 

I spoke with an escrow and title company, and they informed me that they need an executed contract and the probate paperwork to get started.

In the syndication world, we can expect somewhere around $25k just for a securities attorney to prepare all of the syndication paperwork.

It is not correct that you do not need to do the syndication paperwork because you already have a relationship with the investors and are not soliciting people you don't know.

There is less paperwork, no up-front PMI, and monthly PMI drops once you hit 78-80% LTV; 2) The FHA "100 Mile Rule" may prevent you from using a FHA loan on the new duplex.You need to learn to do a comprehensive rental analysis (there are plenty of resources here on BP).

Inspect the paperwork too.