I don't think there is a lot of regulation on what ls legal for transient occupancy, but typically if it's not considered safe for a tenant, it's also not safe for an Airbnb guest.

Contracts typically have a deadline for inspections and a deadline for negotiation of repairs.

If the bank does a title search and sees a trust owns the property, they typically won't enforce due on sale and they can't see who is the beneficiary of the trust because that is not on file publicly.

Using a 10% vacancy rate, property manager costs and typical operating costs I am at at 10% CAP rate. 

If you are unable to secure a better price you may want to look at higher deductibles to see if the savings is worthwhile. 

Exception:  you are an employee of the owner (typically builder/developer) and showing only their properties.That being said, I know of lots of people that are doing just what you propose, and are doing so knowingly or unknowingly breaking the DORE laws, at lest for NY and PA. 

My main question is, do property managers typically charge a higher percentage on units that have lower rents?

In such an instance, assuming no assignment, a seller would typically reduce its purchase price by the amount of the claim that it stood to recover, in order to put the buyer in the same stead that it would have been had no loss occurred.Now, let’s assume that the seller did assign the claim to the buyer, the buyer would have the right, per the assignment, to collect the proceeds of the claim and make the repairs.

That said the typical advice is to look for at least 30% equity.Also keep in mind that all vendors equity numbers are based on computer models, meaning they are estimates.

I’m a buy and hold investor typically looking for value you add commercial multi-family properties.About the deal.