This business model is a distraction.

I could likely survive that for a couple of years before getting the building sold, but way more risk than I'm willing to take. 

"No battle plan survives contact with the enemy."

Optimally one would say go after the property and put in a contingency and inspect, but traditional inspections often miss issues, and I have never seen one that includes costs and suggested modes of remedy other than mine.

Their focus was completely on child-rearing and just surviving month to month.2.

They will definitely never want to do business again, but this is about surviving this deal.

I think the strategy is to be in acquisition mode (buying more properties) up until your cash flow equals or exceeds what your total expenses are per year to live, travel if desired, etc., i.e, keep acquiring property that produces cash flow until you reach X number of properties, or X amount of net worth.

If you want a "Property Manager" who strictly collects rent, answers phones, and calls contractors - then your strait commission model is fine.A property management firm that offers additional services (in house engineering/maintenance, construction, leasing, accounting, financial reporting services, etc.) in addition to the basic property management functions mentioned above will more than likely have a fee structure that includes additional fees that are above and beyond the base "management fee".To the OP - Are you surprised to see the fee in general, or do you feel it's an unreasonable/unjustifiable fee period?

I currently teach Survival School and have that as my full time job.

If need be take your deal (all information - pro forma, noi, and etc.) to a local broker in that area that is under their own roof (if they're in their own building chances are that they know what they're doing and know how to survive) or two.