On the other hand he's sitting in some of the fastest appreciating real estate of all time and has developers throwing crazy crazy money around Somerville. 

If they don't have one that would throw up a red flag for me.As for the contract itself, owner-PM contracts have a regional touch.

There seems to be conflicting opinions on this question so I'm throwing it out to the broader BP community.

There is no set % number that you just go and throw on the wall and hope it sticks.  

The one conception I do throw in there for investors just starting in investing is that early on investors may be inclined to cut costs to leverage their money to grow faster - it's an understandable strategy but comes with it's own risks.

And that certain tenant might trash your place/sell drugs/throw parties.

I'm also concerned that I would be throwing away a good cashflowing property that I got into at the right time before the market took off, one that I may not be able to duplicate so easily, definitely not from the MLS anyhow.

Normally I'd say that you should just throw all his crap out but I think you brushed over the most important aspect of your deal.

Same with a broken window...did they break the window, or a kid walking home during school decides to throw a rock towards the window, or may be your own lawn maintenance crew riding a mower could potentially kicked a piece of pebble towards the window. 

I’m sick of throwing money away with renting.