And the market is healthy for appreciation.

***Its important to note that on the refi part, you need to make sure that the property will appraise 20% higher than the amount you need to cover your 'all-in amount.' that extra 20% becomes your 20% of skin-in-the-game that the bank needs in place of your 20% down payment. 

From my experience they usually give out a lot of good information, and provide the opportunity to network with other investors, but also have a healthy dose of selling too (buying their packages, coaching, or tickets to the next level seminar).  

What can be screened for in the future to avoid this and will the PM spread their placement fee over the tenancy to have more skin in tenant selection? 

It sounds like you handled everything correctly in terms of repairs, and I suspect you will enjoy many future years of healthy cash flow.If it's any consolation, I bought a fourplex that ate my lunch for the first couple of years (repairs, bad tenants, you name it.) 

I wonder if the bank holding the first mortgage would still want to see some skin in the game....

Our job projections over the next few years are very healthy and we have had several years of healthy, sustainable market growth.

Has been a rental since (2011) with increasing rent per year creating a healthy cashflow.

Money in a deal does not represent skin in the game. 

Some of his assumptions are a little optimistic, but I accounted for a lower cash flow and a healthy contingency fund.