For example, in a scenario with an 8% preferred return and a property that produces 10% in a year, investors are entitled to 8% as the tier one hurdle before the sponsor begins to participate in any split of the 2% excess free cash flow of the property.

That, and I know there have been many businesses that have not done a good job or have folded up shop around here with a similar fee structure, so it would seem property management is not where people are making an excessive profit off of investors.I think the other thing that is difficult for investors is they are, almost by definition, self starters that do things on their own.

Make sure you have excess capital!

On the contrary, daily late fees introduce complexity and potential disputes, and they may lead to excessive charges, raising questions about their reasonableness and compliance with state laws.

However, I wonder if I should take out the excess equity in the current house and use that to fund additional payment (beyond 20%) for my new residence.

I have built up a nice collection of real estate investors with a variety of different appetites in terms of geography, property type, and return profile. 

You definitely want to make sure you trust and feel comfortable with the lender you're using because you don't want to be paying excess lender fees and processing fees. 

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

@Tim Herman good point - but it seems like the sprayer was pulled with excessive force.

Imperfections caused by normal residential use-scratches, small blemishes, small chips, etc.Spot painting, excessive patching or mis-matched paint resulting from poor touch up painting, unapproved painting of any kind done by resident.