A local real estate attorney can draft you a note and a security instrument (deed of trust, etc) for this lending arrangement.It would be good to have a loan servicing company handle calculating/collecting payment for a small fee (like how property management companies manage your rentals for a small fee).

I am specifically looking for companies with a proven track record of transparency and competitiveness in their fee structures and excellent customer service.

They will get a 1099 for the deficiency; in the case of a deed in lieu it's generally the servicers FMV - payoff.

From this you need to take your debt service (1500 - 1700/mth) and set-aside a reserve for Emergencies/CAPEx ($300 - $600/mth).  

We run Call Porter an answering service for investors (and are also buy and hold, wholesale, and flip investors) and get to chat with clients about what is working/not working all the time.

They are full service and do property cleanups with their list of go-to subs at a 10% management on renovations.

Generally I use other companies that provide the service because you more easily tailor the type criteria you are looking for. 

I think buying is a solid choice as long as you make some good contacts while your hear, most importantly a good property manager but also try to find a good handyman for service calls, a good cleaner, good yard person, ect.  

I work for the Dept. of Human Services in the City & County of San Francisco. 

Some companies will charge a flat rate, or will charge a set rate per $100k of transaction amount - or will charge whatever they want...Many of the other line item fees are just passed on at the face value of (or close to) the actual cost of the service, while some are pretty subjective - like "doc prep fee" could be $45 with some, $95 with other co's.You can shop and negotiate many of these costs, some you can't, but $8565 does seem a little bit high on a refi.