And on that note, for a small duplex that's about 1100 sq ft total, what is the HIGHEST rehab cost that you would assume worst case scenario?

Some jurisdictions are more difficult to work with and may require a permit for small work such as replacing a lighting fixture and/or a toilet. 

In your position, I would likely fire the PM, hire a competent team and put the challenge to the current PM to take me to small claims for the $1000, with the understanding that I would retaliate with a complaint to the state.

By making small changes to your daily routine, you will see positive impacts on your overall productivity.

Foundation -  Don't be alarmed to see a few small cracks in the foundation.

Small multifamily has an advantage that they can provide some efficiencies. 

@Cee Small thanks!

SFHs will be much higher risk for buy and hold investors unless you have a significant number of doors.Those investors concerned about leverage are either small investors with few doors or are not buying with adequate cash flow.  

The buyers inspectors literally praised the work we had done throughout, but a week ago the CL-100 wood infestation inspection came back noting a small bit of non-structural exterior sheathing damage along the bottom of the back wall behind the vinyl siding due to moisture :( The good news is we are 99.9% sure the issue was caused by rain water coming off of the roof and landing in an area that had standing water before we brought in some dirt and gravel to resolve the drainage issue during the remodel (townhouse is on a slab). 

Is it a big city, small town, middle of nowhere?