I probably wouldn’t mention your third point - it makes it sound like you expect them to hold this note forever and I’m not very certain, but I’m guessing there isn’t a huge market for $100k secondary notes.Have you considered asking them to finance 90-100% for a short period of time so you can rehab and refi at a higher valuation?

This doesn’t mean you’re rushing into legal action—it’s just about setting clear expectations and boundaries.

I've been pondering the same question lately.For items like HVAC filters, do you remind tenants when it's the time to change it, or just expect that they will do it?

@Scott Rankin yeah they are expecting a major turnout.

If I stopped the example here, most would say the portfolio of $100k homes is the better investment.Next, let's assume you decide to sell the Market B homes in year 3 because you are frustrated with the cap ex and management of the tenants in the lower tier houses because you are not achieving the expected cash flow.

Obviously don't buy a deal that will put you in the hole every month but don't expect that you are going to be good on $300/mo. in cash flow either.

A good PM will be realistic on what to expect from Section 8 and help you identify properties/neighborhoods that will support your goal.

Also, I'm not sure if you are demoing an existing structure, if the structure is freestanding, etc, but this will obviously greatly affect your overall budget.For our project, most of the material prices are in line with expectations, but where we've been shocked with recent increases is the soft cost. 

------------------------------------------------------------------------------------Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

I'm not sure what else to expect.