as stated above if your seller.. and you have an existing mortgage you can1. sell sub too and collect your equity.2. do a wrap and in essence wrap the first or simply do a second.buyer takes title sub too you get the delta.

The number you have is the top-end of what you could pay for the property and still have a profitable rental in the end.If this second number is greater than what you arrived at as the value of the current business, then the delta is your negotiating space.  

I know we like to classify property like they are commercial properties .. but what are you buying C's Bs and you know some markets Cs are Bs in others and Ds in others.Your spot on with regard to community banks... most have it right in their lending charter they can only loan to those that live and work in the footprint which is usually within 100 miles of the market.PM is the key and bears repeating.. also remote rehab as you stated can be everything from semi rewarding to down right risky to downright wipe out.. this is why turnkey is so popular granted you can garner some delta between cost and turnkey mark up but you have to have the time and ability to do that and its not realistic for beginners or those buying just a few properties.  

I had a line of credit with my bank and i would hypothicate the notes and tag them to the credit line.. this let me draw 50% of the note value out with no tax.. and the payment coming in from my buyer was higher than my bank payment so i also got the delta and when it paid off i did not have to discount.some will talk about this as also selling partials.. all though in some arena's folks think partials are securities so do check that before you let someone talk you into that aspect.. the hypothication is the way to go if you can muster it.

.  (-$500)- Maybe $1k per year in marketing/legal fees (-$1000)Total delta would be $26400 - $2417*12(PITI) - $2112 - $2112 - $500 - $1000 ~ -$8k per year, not accounting for any depreciation benefits.Does this look in the ballpark of what I'd expect? 

I purchased 2 tk properties in Indy and both are in similar neighborhoods but the price delta was 30K.

Also, calculate the delta between owning and renting and make sure there is some gap. 

That delta was smaller and made the decision easier to swallow from a financial perspective.On the flip side, I do point out to clients in this dilemma that the home will probably never show as well as it does now with you in it. 

As a general rule, the money in investing is made in the Delta.

(You have to spend time with your mgr each month doing a brief review, even if nothing has happened).Understand that this statement was totally made in a vacuum (which we obviously don't exist in) and doesn't take into account the delta of risk associated with getting burned by a bad manager, bad vendors, etc.