My son recently talked to me about being a sponsor on a sophisticated value add.  

I've been going through "The Multifamily Millionaire:  Volume 2" and in Chapter 13, they talk about property management ranging from 4-6%, on top of on site management that is on the owner's payroll, separate from property management, and that you should budget about 1 staff member for every 40 units.If you (the owner) are already paying a property management firm, why do you have to have on-site management separate from the PM? 

Speaking broadly, I think the best investment strategy involves finding properties that aren't fully utilizing their income potential.At a more sophisticated level, that might mean buying a fourplex of large two-bedrooms, making relocation agreements with the tenants, remodeling the units into three-bedrooms, and then renting them out at market rents.

We have an S-Corp that manages both LLCs, so I can take payroll and contribute to retirement accounts. 

And sometimes banks are the ones who mislead such a home buyer, by issuing pre-approvals and approvals to sign a contract, but then back out when more sophisticated underwriters spot an issue (in buyer's income, credit score, DTI, property value and etc.) that loan officers who gave preliminary approvals didn't want to see.

Typically, banks, funds, and traders will have an expectation or estimate on key economic data releases, often created through sophisticated, complex financial models.

Other areas of the city it should be the cheapest unit but this is an area that has a lot of sophisticated buyers.

I used to own three rentals in Seattle but after 2012 when the prices got too high I realized that sophisticated buy-and-hold investors invest where the numbers make sense with cash flow, not appreciation (gambling).

Everyone thinks that replacing a light bulb should cost $5, meanwhile you have to send out a qualified person on payroll with benefits on a company vehicle, who has 30 minutes travel both ways and then Home Depot ran out of that special light bulb.. 

I started flipping and now I run a wholesaling operation and I spend 15k dollars on marketing each month to run my business and that's not counting payroll.