The larger houses can get more money in the best school district but those are hard.

Long story short I just evicted a tenant that left a dog behind.

I am working with two PM companies (on separate properties) to see which one will work best for the long term for larger scale.

Finance is very structured and intertwined by rules, regulations, laws and acceptable practice, you have plenty of room to operate outside the box, so long as you stay inside the larger box.

My dog and I walk there, near O.C.U....

Some of their homes are dogs and they get stuck with them, so it's not all roses.

You can presumably build much larger projects this way too because you have a lot more individual collateral and guarantees for the banks.If this is actually the case, it's hard for me to find anything intentionally nefarious in your setup since it's possible that you are actually creating sufficient equity in your developments by managing your costs, and building in scale.  

I just followed up with PM and learnt the inspector tried to enter the home earlier in the month (he communicated with PM, without my knowledge), however tenant's dog did not let him in.

Being a bird dog is a great way to earn some money while learning the process along the way.

If you've already accounted for foundation issues and other larger items, which it looks like you have with a 40k rehab budget, there's less of an unknown.