They decided to sell and wanted $50,000 more than comparable units.

Compare the two options and see which one works best for you.   

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

.- thanks   1) on the  1st mtg  refinance proposal at 4.1%  -  sounds like they are  offering you the  higher note  rate  so they can  absorb  some of the closing costs .....make sure you get a loan estimate and  review the details about them picking up all costs  ( titel / escrow / recording /  credit  etc ...)    2)  also  check the  index / margin and  caps   on the new  loan  offer   and  compare these to the  present loan  details  ...if you  keep this loan past the   rate/ payment  adjustment  period - you want to make sure  you  are aware of  how the ARM  can  change   3) the offer  to  do  " free  "  refinances in the  future  is  no  big deal  beacuse  any lender  can offer this  via  a higher rate  to  absorb  all costs 

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.

It's tougher to get cash flow upon move out these days but if you're patient, willing to do some work, or live in lower cost/fringe areas you can make it happen or at minimum put a serious dent in your housing expense which is still a win in my opinion compared to renting or buying just a primary home.Also if you're a bit short on cash, make getting a seller credit part of your financing strategy.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

If you are not covering expenses, you should review pricing and see what other comparable properties are charging.

Land seems expensive, especially compared to Northern NM which is another market I am considering.

There's nothing different about him compared to you.