. :)  these are not credit score loans ( I mean I have a credit score) but thats just a formality its all about capital and relationships with your bankers and deposit relationships thats key as well.Yes your relationships with sub contractors will be a huge factor in profitability, both direct and indirect. 

If your cheaper but I have to worry about utilities that I have to also possibly set up that could be as high as $1000 a month, that definitely factors into my decision.Thanks for your thoughts, Brian.

It's really hard to predict where regulation will go and it is indeed one of the risk factors for all investments.

What factors lead to this decision?

It depends on a lot of factors; primarily the local jurisdiction rules that may limit lease changes (in Portland/Oregon rent, security deposit, screening fees, an no-cause evictions are heavily regulated).

The appealing aspect here is the ongoing population growth and other economic factors.

Quality pics are by far the number one contributing factor.

Racketeering Influenced and Corrupt Organizations Act. 

Although the percentage of the increase is large, the determinative factors are whether the resulting rent is so great as to shock the conscience of a reasonable person and was effected for the purpose of compelling the tenant to vacate."

. #1 is the primary reason, but #2 does factor in as well.