One even said she would “only” charge us 18% as a favor; every PM agency charges roughly 25% or more.

I am not going to challenge the IRS for a less favorable position for a client, and am comfortable with my practice's approach and analysis.If anyone wants to do something different for their clients, that is their prerogative.

The reality is that 90% of business startups no longer exist after 2 years; that people who enter a business startup without possessing experience specific to the startup, high analytical skills, extreme persistence, high intelligence, and the ability and willingness to work long hours, as well as some luck, will inevitably end up among the 90%.The odds can be increased more favorably by purchasing a well established franchise, however none exists in the businesses you’re interested in.

Looks like they are trying to gain favor with landlords again. 

You said you have great credit, use that in your favor.

As a cash machine, real estate is a relatively poor investment in a world where blue chip stocks like T yield 6% in dividends and riskier stocks yield a heck of lot more at a favorable 15% rate. 

Meanwhile rent out the last house, prepare to sell it to get favorable capital gains treatment after year 5 (owner occupied 2 out of 5 year gains are excluded). 

@Evan Polaski exactly my thoughts, opportunity cost is the biggest and will be my argument for a more favorable split.

But as with anything that comes to being a long term real estate investor time will work in our favor, neighbors will come and go and the “new rules” will become the status quo. 

Do yourself a favor, join a LOCAL rental housing owners association.They have the forms you want at a cheap price and usually have attys to review/renew them.As a landlord, accurate paperwork is your best defense.