Verifying last 2 years of rental history very important!

It's really very simple math - buy it low, rehab it appropriately to gain a higher value (ARV). 

Best of luck in your endeavors

Have the opportunity to purchase 64 homes, all have renters, book of business is very profitable. 90% of the properties have new roofs.

Sean,Very clear and concise answers!

Therefore, that fee is there to make sure that they are getting the job done the first time.Anyone who is saying that they can do a great PM job and won't charge you anything besides the monthly fee, is most likely going to fail out of the business because they won't make enough to stay in business, hire and grow.It is very important to understand all the fees associated with a PM, but I encourage you and your friend to not shy away from a company right away if you see they have fees on other things other than a monthly cut.

Any advice or best practices would be great appreciated! 

Managing tenants comes with its own challenges, but it's definitely a viable option to get started in real estate.Wishing you the best on your journey, and feel free to reach out if you ever want to chat more about it!

I'd suggest asking your lender to mock up what it would cost to get your rate to 5% and then do a cost-benefit analysis to determine if that's the best use of your funds. 

But if you need more cash in hand now and can handle the higher fees and reduced cash flow, option 1 could make sense.As for shopping around, it might be worth getting a few more quotes, especially if you think you can find something that combines the best of both worlds—a decent LTV and lower fees.Hope this helps!