If he truly is a good property manager, then I would take on the headache of setting up the accounts dong the accounting to avoid losing the PM.

As someone once stated somewhere on BP, "I would rather lose sleep over a house I didn't buy than a house that I did buy."

Get out of the contract, even if it means losing earnest money.

Often folks wait too long and lose the home (and their credit as well) when the home goes to auction/foreclosure.  

If an agent that you have an agency agreement with pulls a move like that then they are violating their license regulations, and can be called up before their Real Estate commission and potentially lose their license.

When the  herd says buy you can't lose that's when I run the other way.The  property has to make money when I buy.

I will send them a copy of a $100 BILL and say "There's more of that where it came from..." and then offer to buy their house instead of them losing their home to tax foreclosure. 

A good team will help you with any legal questions and reduce the risk of losing money.

I would be afraid that if something happened and the deal can't or won't close then you lose the repair money.  

It can get very overwhelming at times and if you aren't completely focused and devoted, you can lose hope of ever getting done.I also agree that you should never use hard money in this situation.