I invest in portfolios of 10 SFR at a time that are co-owned by the managers for aligned interests.  

Moving forward, we would like to pay him purely off % of profits with no base in order to align our interests better. 

They should try to best align their income interests with yours.

Either way, thank you all, this has helped me better align my expectations. 

I have also done other kinds of REI out of state, and my current preferred buy and hold strategy has me investing with a company that offers interests in portfolios of 10 single family rentals (SFR) at a time that are co-owned by the managers for aligned interests.  

Find a PM with whom you can align goals, i.e. they make money when you make money, they make more when you make more.

San Diego is generally more desirable than Buffalo, so people will devote more of their income to housing, But I bet if you did this formula for every city the rankings would align very closely with the price to rent ratio. https://smartasset.com/mortgage/price-to-rent-rati...If you look at the list, San Antonio and Memphis are near the bottom.

Ask yourself what are your goals and desires and if this project doesn't align with them then of course you can pass.

This buys you scale with somebody with experience doing it, and if the private placement is constructed properly the provider's financial interests should be much better aligned with yours as an investor, whereas with a realtor, contractors, PMs, etc. out of state it is possible for them to make more money even as you the investor lose your behind on the deal.

I am describing my PM who has a better system that IS fair, aligned with an owner's interests, and is working out for both PM and owner.