My biggest issues so far is that they have had some labor issues on the maintenance staff but this is everywhere and i believe will work itself out in the coming months. 

The larger the deal, the lower percentage the fee should be.1-2% Asset management fee5-8% preferred return to investors (I don’t like higher than 8%, as this forces the sponsor to sell, in order to profit)70/30 to 80/20 split (I don’t like 90/10 splits, as there is little incentive for the sponsor to perform)A waterfall that incentivizes the sponsor at a 13-16% IRR is ok as well.

Other than institutional lenders turning off the spigots in May of 2007, our single biggest exposure and source of most of our problems was the quality of the property management.  

As mentioned above: if you paid some sort of “bribe/incentive” to the seller  you’ll need the receipiant’s social security number and they’ll need to declare the income. 

Cost alone not being my biggest consideration.

TENANT:  Oh, I wanted to make it a 2-bedroom apartment.ME:  --Biggest facepalm ever-- You need to contact us before you do any sort of modifications to your apartment.TENANT:  Oh, I didn't know that.ME: My manager will contact you on Monday.Needless to say, she probably won't be staying very long...

In my case, I fall into the latter - I only invest locally therefore the Nashville market is the best for two reasons.1 - I sell real estate in Nashville and I have an incentive for you to choose this market.2- I know absolutely nothing about the other markets mentioned in your post. 

I said it 10 years ago when I was on the BP podcast, and it remains true today....the biggest mistake investors make is an inability to properly judge risk.

However, the biggest challenge is dealing with well and septic systems, which can cost $15K - $75K to fix.

Basically everything I’m looking for is what’s the biggest bang for my buck.1.