Also, you don't have to pay for a leasing fee- for example my property management in Indy charges one month rent to lease it up.

The 1 house that put laminate sold $3k less than listing price and the 3 houses that installed granite sold for $3k - $5k more than listing price.

Interesting... when loans are sold to the secondary market, but the original lender continues to service the loan, does the original lender get a service fee?

Both our tax accountant and financial planner are against the cash out because of the fees, but we have no other option if we want to get into investing in RE.

In order for it to be a good buy you want total rent for both to cover the mortgage PLUS vacancy (8%), CapX (10%), repairs (5%), and management fees (10%) (all percentages are just general, you can tweak as needed). 

Your management fee seems a bit low as well, typically those are closer to 10% but can depend on the company.

If they are marketing and bringing you new properties, then a percentage or a flat finder fee for each property may be appropriate.If their role is purely administrative and they are simply managing the rentals once they are received, then I would only consider a periodic bonus based on the increased workload.

I’d contact the title company I worked with and bam by 11 I’d have 60 years of title history...yup West coast have digital title plants.. and the other east coast the records are at court house and an abstractor has to collect them for a fee.. or you have to do it yourself.. keep in mind East coast records are far older than west coast.. we are babys .. most records start with Spanish land grants.. along with section and range descriptions.. with 90% of the searchs done in lot and block.Just like some states people actually survey an SFR before they buy it.. that simply is never done in a subdivision on the west coast if you asked for one realtors and others would look at you like your were from  Mars or maybe Venus

My intention was to pass on the loan servicing fee to the borrower.

Forbes has a habit of putting something like this out every few years.The "bad" thing about investing your IRA in real estate is that the main Wall Street players do not have control over your funds and the means to earn commissions selling financial instruments.His arguments are entirely tilted towards to negative and not providing any context or perspective.I could just as easily pick 3 or 4 historically bad stock investments (Enron) or high fee annuities, and make it sound like that was all that you could expect if you went to a conventional brokerage - which is clearly not the case.For someone who understands real estate as an asset class, there is the potential to have your IRA produce consistent returns and have true diversification away from the news-cycle volatility of conventional financial products.