Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.

However, you make a great point about starting local and dodging PM costs to start...

The total cost for this monthly for me is $1.00 fee for online payment for Sevier County, TN and the .73 cent stamp for Blount County, TN.

How about the increased home insurance cost for a landlord policy?

If I can make a suggestion...Yes with 3 points you might be able to get into the 6's - but let me give a quick example:Let's say loan amount is $250k and making some other assumptions, paying 3 points down would cost $7,500 however that might only save $195/mo. 

Risks: rates go down and you have to pay a prepay of 2 or 3 %; you have to sell and pay the prepay; rents decline & you can't make the payment like any other type of loan; cost upfront a little more than conventional; need to find experienced broker licensed in the state where subject property sits; servicers are bulldogs. 

It was a huge investment, but it cut the electricity cost by the full 2K per/mo all summer.

Past success is a good indicator of future performance. understand the risk if the project takes longer or costs more.

Leverage is one of the most powerful tools in real estate investing.

The only approach I’ve found effective is offering a deposit alternative, which lowers upfront costs for tenants without devaluing your property.