His company wanted around $1,950 to set up a Wyoming LLC with our NC LLC parked inside of it for extra protection.

Hopefully questions like that and extra screening will mitigate some of this.For context, my wife and I just moved into our first househack.

Always plan for $5-10k in extra expenses that are not planned in the budget especially with older homes.

If not, and they can't show you actual data to support that number, I would be wary.  

You never know when you need the extra cash and never know if you will upgrade your life.   

This is just a step to ensure you are being extra safeBasically, you can still do both in any market, but you have to be more accurate with your numbers when the market is shifting or nearing a shift. 

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

No extra hassle there. 

@Kathy HenleyWhy don’t all the owners put up their share of the needed extra $$$?

Would you also recommend me taking part on a deal even with little to no money down right now as a college student because I am sure I will need to have extra cash while managing the properties or even to to a little bit of rehabbing before a tenant moves in.