I understand some of the possible implications of making this move would be a likely higher interest rate and lower NOI on the new investment but would like to get additional feedback on what other things I should take into consideration with this possible move from those out there who might have some experience in this realm.

I would be cautious on looking in the lower end of that range. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

@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.