“C” class areas, ideally looking for “nice neighborhoods” or up and coming.2.Older properties due to excessive maintenance costs.3.Multi family, condos or anything with an HOA.4.Areas where vacancy rates are greater than 10% per annum5.None of the following in close proximity: a.Rail Roads b.Busy Streets/Highways c.Flood Plains6.

If it is a small scratch (ie not deep), I wouldn't worry about it.It doesn't matter how much money he has or had, what matters is what is excessive wear and tear.

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.

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.