as I belive some people are trying to avoid the hassle of furnituring style and overall cost but not sure if they are the majority in the market or not.

What characteristics of a property manager you should look for, as well as what to avoid. 

But I personally avoid doing this both from the owner perspective and architect.

If the fees are outrageous vs the return, see if they can immediately move it to a non-FA account, which might save a little $ and will buy you time until you figure out what future retirement account custodian to use (if that's your plan, obviously).Regarding Medicaid, your goal should be to avoid Medicaid at all costs. 

There's a particular type of carpet fiber I avoid. 

There are a few neighborhoods I would avoid.

Avoid operation of a private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack, gambling establishment, or a store whose principal business is the sale of alcohol for consumption off premises.The 4th requirement is of particular importance with regard to the real estate company in your hypothetical. 

Or seek capital from friends and family to avoid the PMI and get a conventional loan for 20% down?

I have avoided them and know that at the LTV of the original note that the second lien is more or less worthless.

Again, with no credit to get your line started, a co-signer may be required if you are firm about avoiding an asset based transaction.Jim Johnson is a Pro Bigger Pockets user and I would be interested in the Cash Program he is talking about myself, if they are risking $100K unsecured without credit.