The third party management business will require several hundred units to really start being profitable.

@Josh MeyersConsidering all the money you spent on the rehab, can you spend a few hundred more and have it appraised?

I think people should pay you a few hundred bucks to just ride along one day when your doing inspections.. :)  Investors simply live a different life style.. they live a great lifestyle generally then invest in those that live pay check to pay check then expect them to live the life the way they do.. simply a pipe dream

Then they developed mudslides and the whole subdivisions - hundreds of homes - were condemned. 

That's the difference of spending 5-10 mins per month vs 1-2 hours if they're difficult.1 vs 100:  Chances are your PM will have dozens, if not hundreds, of clients. 

People losing their homes had zero desire to move back in to an apartment.We offer 2-3x the space, garages, yards, no shared walls/fellow tenant drama, and in home laundry for a few hundred more than an apartment and less than ownership costs for the people that only put down 3% on a 6% loan. 

Your competition spends thousands if not tens of thousands of dollars every single month in marketing for those off market deals and there are hundreds of "wholesalers" out there.

I've seen hundreds of investors come from SoCal to the Midwest.

There are probably hundreds of good cities to invest in but you need to narrow it down to specific markets.

He spent hundreds of thousands of dollars fighting off something that he had no knowledge of or involvement with.