If they are difficult or risky tenants, they can be detrimental to the sale of the home.

As such, is the sponsor going to sell a deal into the free market and lose the added efficiencies on their PM side, or do they hold longer (potentially at the detriment of the LPs) to continue to help build scale?  

It reduces risk by having them know the laws which are extensive (down to needing a compliant monthly statement) etc.The other component is no chance I could do it for that price either.

Consider that if you build your portfolio to 10+ SFH, and you're 100% occupied; each tenant causes damage to a deemed essential component of the house, requiring professional repair each month but they're "excellent and don't complain", would you pay for the repairs, not holding them accountable?

Figuring out the funding component is fairly straightforward from there. 

Once the tenants know that you are not providing a safety net at your financial detriment, you will more than likely hear from them.  

(you will be singing Aladdin's song) " whole new world"  cos what you want is basically learn how to get and catch the fish , and for that there is a lot of components, such as the Rod, the catch , the current , the river, etc( you get my point right now you are getting the fish and trying to eat the fish our resale the fish .. ( nothing wrong with that ) Is just a matter of what you are trying to accomplish.  

 $1m to $2mm with a retro component is a big number if this is your first time.  

It appears you are focused solely on the financial components of the project without understanding the insurance and liability factors of self-performing the project in the manner in which you propose.

You should never fight to get someone out of their home unless it's truly serious - they're hurting themselves or others, unpaid rent, or creating a real continuing disturbance that is detrimental to the property.