I was forced to cash out my 401k in payments to minimize tax penalties, using it to complete house projects and pay off some debt.

We have substantial closing costs on the sale, primarily transfer tax and realtors' commissions.

Is the manager collecting fees for services rendered? 

- Broad language excusing PM from any responsibility (including that of anyone they subcontract out to)- Charging the owner additional "convenience fees" if they "fail" to perform according to an agreement (with broad language about what that means)- Making the owner pay for any mediation / attorney fees for both parties (with no cap specified)Specific fee structure: - Management Fee: 10% scheduled rents (up to 3 units); 8% up to 15; 6% up to 35- New tenants placement (not renewals): 50% first month rent- 10% mark-up on all service fees (no receipts required)- 15% mark-up on total cost for any capital expenditures- Flat turnover fee- Flat evictions fee

So you tax basis will step up to the sale price.Good luck!

It's the same work to do a $55K loan as a $500K loan so the fees will be higher due to the loan amount but will still be much lower than what a lender or broker gets paid on a higher loan amount. $100K and above loan amounts will get you more lender options. 

Look at property tax sales.  

Property taxes ought to also be considered.

So no tax returns, DTI, etc.

Discuss any pros and cons with your attorney and CPA to weigh the advantages and disadvantages, particularly regarding liability protection and tax benefits.