So they are always paying late fees.

This hit us hard but we do not want to have to deal with legal fees and more time if we had to file a larger amount, higher a lawyer, file with a different court vs Small Claims.So part of the reason why the difference is so large is because 1) we were hoping we could have a contractor come and just sand, fill, and refinish the areas that were damaged but due to the floors being engineered wood and also having a certain character to them, we can't have them sanded or you would be able to see exactly the areas that were sanded. 

I live in California and I know the fees are high here.

I literally signed a contract, drove to my wholesaler friend and he gave me a 60K assignment fee and closed on them 3 days later.So don't let people tell you it's hard because it isn't.

Every payment grandma gets, as well as fees and PMI, is tacked onto the mortgage balance.

(I'm in Arizona so your results may vary) Compensation can only be paid to a licensed broker so you can't pay "finder fees" to unlicensed bird dogs or wholesalers.

You could go with a commercial lender, but you'd most likely be looking at higher rates and fees, and shorter terms.

Obviously you would have to subtract the loan fees, but that's how it works and one of the best things about holding real estate long term.

(Because at a point the fees would just be too high. $10k+ per month... even $20k+per month.)

If the owner - the one who is paying their PM fee - can't get a hold of them, how difficult do you think it's going to be for your tenants to get in touch with them?