Property managers typically charge between 8-10% of your gross rent, so if your property rents for $500 a month (low, just a nice round number) and your PM charges 10%, you will pay them $600 a year, which really isn't much for the service they provide.

I would be interested in what areas are hot and any A, B, C properties and typical cap rate type information.

Cap Ex and Repairs can typically be closer to 8-10% each.

Moving the rear door over would have helped tremendously but it's not an option with the budget as the exterior has a very dated stucco style and we wouldn't be able to match color/texture and keep it in budget.So I'm looking for ways to define the open space directly opposite the kitchen.

Typically, a buyer can't/won't/shouldn't take control of a property until they close on it, because they do not own the property until they close.If you rent out some other person's property (or estate's, in this case), I hope you plan to get some sort of written agreement from the current owner/estate.

I enjoy every detail of fixing and flipping very much, from rethinking the layout to choosing the color scheme. 

Varun,Typically, the Insurance company would not contact the Mortgage company unless the policy is being cancelled.  

I'm working with the owner of an almost 100 year old small (<900 sq. ft) craftsman bungalow with small rooms typical of a home of this vintage.

There are many folks who will tell white lies in this direction which I cannot promote so think being honest is the most sincere way to generate a response without imposing on them.

The HML will do 70%, what does a gap lender typically cover?