@Sean Kirk As someone who owns a Property Management company in Birmingham and has experience working with both Turnkey providers and Value Add investors, I’d recommend steering clear of Turnkey properties.While Turnkey properties offer a lower barrier to entry, they also come with much lower rewards.

But he was trying to pull a classic move—waiting until the last moment to pressure us into lowering our fee, thinking that we’d be desperate to close and agree to his terms.But here’s the thing: We weren’t.Instead of giving in to his renegotiation tactics, we told him no.

Many investors from California are choosing to invest in the Midwest because of the low barrier to entry and yearly cash returns making more sense in these lower priced markets.

That carries over to the economics of the deal and you'll see returns much lower than if you run them on a more efficient floorplan. 

The payment difference at the lower rate is $49 so it would take you 3.9 years before you see a breakeven point.

Are you utilizing any cost segregation studies/real estate professional status to lower the taxable income?

One of the reasons is the price points are so much lower than Napa or Sonoma.

The lower class buildings look higher cashflow on paper but real life it all nets out around the same.

Take the lower of the 2 if it gets you the funds needed for the next deal. 

If you have 20% equity, you may also be able to remove your mortgage insurance and lower your monthly payment in the process.