@David NewfangThere are a number of self-directed plan formats offered by different types of providers that suit the needs of various portfolio types.A custodian like Entrust is simply the base administrative/processing layer. 

I can even control my cash reserves in the case a drug person decides to cause property damage. 

I did foreclose in 07 on a 8 unit in Tacoma.. but that was caused by drugs.

As an example I worked as a real estate administrator/assistant property manager on the commercial side.

Is there a middle ground where I can have someone do the bookings, price changing, administrative tasks, and they get paid a salary or percentage but I still end up not paying PM levels?

If the prospective tenant fulfills their obligation and moves in as planned, the Holding Deposit will be refunded/converted towards the Administrative Move-In Fee, which is $100-$200 and due at time of move-in.

My specific concerns relate to whether filing a claim against a bond introduces a substantial administrative hurdle that (when compared to the ease of converting a security deposit) makes a Rental Bond undesirable?

The Feds assume you always get your cash from terrorism or drug sales I guess, but they make us do it...plus, statistics overwhelmingly show that if a borrower has no skin in the game themselves that the default rates is exponentially higher for the lender.

Also, review the contract you have with the Section 8 administrator, which is most likely your local Housing Authority, and follow their requirements.

Monthly 0.6% or 7% yearly seems little considering administration costs of the appartment building are not included.