It has private backyard, garage and privacy but lack amenities covered by townhouses. 

Could be the payoff got lost in the mail, could be that it was never sent.This happened to me and my title insurance covered it 

On your side though, you have to make sure you get enough money up front from them to cover these payments.  

Or take a smaller mortgage that will be more likely to be covered with the rental income in it's entirety but not have a huge exit number?

Initially, we will be covering just the DFW metroplex with efforts to expand quickly to the other top investor markets in the country. 

I am sure at has been covered else where but where do I start!!!!!

The fee they pay covers the administrative costs of updating leases and tenant ledgers as well as re-keying the property, to ensure the departed roommate does not have access to the unit once the termination goes into effect.  

Are you able to raise the rent some to help you cover those costs?

Many topics of concern will be covered on a daily basis. 

Do I start with the hard money with 20% skin in the game and then ask for the full $140k to cover all purchase and repairs, make the repairs, get an appraisal, THEN get a conventional loan to get out from under the hard money loan?