I'd charge 8 to 9%, but you need to consult with a real estate attorney for legal practices in your state (and dodging around the SAFE Act).

Conversely, there would be a margin, which would become apparent to the end buyer as a simultaneous closing wouldn't work as I know it, with owner financing.

The problem arises when the rehabber (Jon, in this case), decides that he needs to hire a GC to pull permits and bring in subs -- which he would very likely have to do if he didn't have a full-time employee managing the project.In that case, it would likely be more expensive than the 5-10% management fee option.So, while in theory I agree that the management fee *feels* wrong, in practice, I think it actually saves both sides some money.

In the name of quicker access to real estate information in the hands of local government folks (register of deeds, local assessor, tax collector, county surveyor and map providers, etc.) I've drafted a contact list f...

This is bad practice.

In practice, this means we dump {most} surplus cash flow onto our mortgages and, when we find another property to purchase, we draw those funds back out via the LoC component.

I am sure things are handled very differently over there.You might want the HOA to pay for a consult attorney local to the area and HOA formations and enforcement practices to get a take at the meeting of options to proceed forward.No legal advice

She is such a good and trusted friend that we did no paperwork (I know, its a bad idea in practice but still no problem there, I also figured I can put a mechanics lien on the property should she try to claim its hers).

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@Matt Devincenzo -that sounds like the most practical first step.