Some markets require hosts to charge a hospitality tax just as hotels do which cuts into profit margins.

The tile flooring did not match throughout the house, the grout lines were not even, and some areas around the edge of the time had almost 2" of grout instead of cutting a piece of tile for the edge.

So basically my $325 a month that I needed to just handle these specific items really cut into my "cashflow" that I originally thought I had.

The sponsor doesn't get any of their "cut" until you, the passive investor, get your 8% preferred return.If there isn't sufficient cash flow to pay the 8% most deals are structured where that shortfall throughout the project is made up on a capital transaction (loan proceed or sale) first, then the sponsor will start to get their cut on that cap transaction.Remember that in this scenario the sponsor doesn't get anything until the passive gets their 8%, if no 8% then no piece for the sponsor.   

It appears the lawn has never been edge as the bermuda thatch is 3-4" over the concrete in places. 

I do have experience with people trying to make me lose other potential buyers and then cutting the price.I never put up with that. 

But, quick thing is that you'll be able to go to a lender, get a 75% LTV loan, and they will cut you a check for $31,500 (Before closing costs, taxes, etc.).  

You can often get an edge in the rental market but just doing a thorough cleaning + a little painting. 

They will want their cut of lost commissions, as will the agent.

Do not cut any corners that makes any property to look better on paper.