Leasing commissions, construction management mark-ups, etc are on top of the PM fees, and should be outlined in the PM agreement what services are included, what markups happen, and any additional costs associated.

In other words, there are no fees beyond their monthly rent.In my market, people who are renting for 3 months want all that an STR would provide and no additional fees.

For additional context, both tenants are up-to-date on rent and at or near market rate. 

However now the PM/Agent is telling me he used my 53k in available credit to do the rehab, (told me a contractor ran off with 18k), and then that it cost him an additional 36k to finish the rehab.

A copy of his Accord with you added as additional insured sent directly from his carrier.Personally I'd make sure you have your own builders risk policy & I'd consider a GL policy too.I'd also be well versed on contractors license law (if there's any) in the state your operating in.

Only if your rents increase faster than inflation will you have the additional dollars needed to pay future inflated prices.The income must be sufficient to replace your current income; you will need to buy multiple properties (scale).The rental income must last throughout your lifetime and into your children's lifetime.The income must be reliable.

If your hold period is short, it may not make sense to take bonus depreciation.BENEFIT - Clearly additional depreciation is the benefit, but only if you can use it. 

From what I understand, the annual gift tax excludes $18K per person (2025 limit), and anything above that either gets reported against her lifetime estate/gift exemption or requires some additional planning.I’m trying to figure out the most tax-efficient and practical strategy here.

Also, you'll likely need more than one property to replace your current income so you need to acquire multiple properties with the least additional capital.Rents follow property prices, with a 2 to 5 year lag.

The buyer is receiving 100% financing but putting up significant additional collateral.