Trying to determine if this is reckless or sophisticated investing....The idea is that annual percentage increases and the possibility of rates lowering will allow for positive cashflow.

If rates go down just another percentage point, that's what I'm hoping for by year-end, prices are going to go through the roof...Everyone will come out and buy.

Only a select percentage of renters are looking for that size or pay a premium for extra bedrooms.

Who you vote for has consequences.Unfortunately, a lot of people are voting for politicians that want to take away private property rights and determine what you can do with your property, how you do it, when you do it, how much you can charge for it, etc.Thanks to the large percentage of illegal short-term rentals, and the poorly run ones, you can expect more and more crackdowns in the coming years.

I would have used a servicer at the outset but the one I contacted (just after signing the contract) said their computer system was set up for percentage late fees, not set dollar amounts (as mine is - per the attorney), so they couldn't take it.Let this be a lesson to others.

Separate from the lack of necessary information, I'm not aware of any market in this country that can support the costs of ground up construction, particularly in the scale you are envisioning  where 2 bedroom units are renting for $1400 without significant subsidies. 10% max cost as a percentage of asset value on completion is a good rule of thumb. that is how we underwrite every market. 

So if a listing agent wants to get a home sold and get the most eyes looking at the home in person, they'd be wise to keeping offering a coop percentage.

I'm curious if experienced investors have a ballpark percentage they factor that rents will increase, on average, over the long-term (like 30 years)?

Clients in the mountains outside Denver and outside Colorado Springs get at least a higher percentage of bookings from VRBO.To me, that's always been the case -- cities are more Airbnb, resort areas (mountains/beach) are more VRBO.

I have never been a LP on something this small, but on bigger projects the GP charge an acquisition fee and mgmt fee, but their profit share is no where near 50% (possible exception for far exceeding projected return then GP get larger percentage of profit above the expected return.I am unable to tell the GP capital commitment.