Throw in some extra costs like moving expenses, professional photos (a cost the STR PM may also need to pay depending on the quality of the existing photos), renter's and lessor's insurance and a listing on furnishedfinder to round out some of the start-up costs.

(it will take you 163 months to break even on your cash outlay by paying that extra towards principle).

Texas folks please as I need to follow TX laws.Thank you.JF

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

Maybe if you really like these guys and their work...and feel that they honestly got in over their heads, you could throw them an extra $500 just to appear 'nice'.

One less extra software to worry about...

If the property is in a rough part and only rents for 1000 and is harder to manage than a rental that's double that and it's percentage based they gave to be compensated fir the extra work. 

To get any cashflow I think I need to be looking for something around $250K, that doesn't need a lot of up front rehab, to give me enough extra for closing and reserves, and in a submarket that will gross 3000/m.

I agree with other responses here, and to piggyback on them it seems everyone plans to 'own forever' when they sign a 30 year lease or finance term, and then things change (job, relationship, life events, etc) and folks try to sell the property with 25-28 years left.Banks do not look at power bills when determining DTI, but they will look at a solar loan/lease. 

Lots of folks needing a cheap place to live!