I am not familiar with Horn Lake and the economic conditions you mentioned as a CON, but if you already have those concerns, on top of a large rehab, which typically don't shrink as you get started, and being OOS and needing a PM team, you may want to consider other options as you get started. 

Similar to what Becca mentioned, if you can hold the home for long enough it will appreciate.

As @Lucas Martinez mentioned, FMV rents in Santa Barbara have exploded, I'm trying to be considerate of my tenants while also exploring a path to adding value to the investment--which I know probably falls into the oxymoron category.

You also mentioned fundamentals.

Not to mention the inital product costs to begin with.....and even though I had no labor install costs since I did it myself....it was still pretty costly.

He's selling the house because he needs the capital to do a new build.I forgot to mention its a 3 bdr/1 bath.

When I asked what did he think the rates would go down to, he mentioned possibly 6.5% but we decided to wait.

as @Noel Challenger mentioned ?

@Alex CollinsAs mentioned by Jonathan Greene.If you're transitioning from nursing to full-time real estate investing, focus on house-hacking in high-demand areas like downtown Indianapolis, Carmel, or Greenwood, targeting short-term or mid-term rentals.

Actually, he never mentions passive income.