I would just recommend choosing a property that doesn't need heavy rehab.

The traffic is always heavy in these areas which makes turnover a bit easier than more rural locations.

This is all conjecture as I am not an estimator or contractor, but I know Monteray Consan 20 works well.That was my fear with this quote, it's heavy charges to tear down and almost nothing about doing the drywall after they tear it down. 

Now my focus is on heavy rehab mix use/ multi-families that can be delivered below replacement costs and  $400/sf+ outsale new construction opportunities.

There is a lot of grey area on this site, as there is on most sites, and in the interest of wanting to be fair to posters and not be ridiculously heavy handed, most mods will give posters the benefit of the doubt on the front end, maybe with removing a post and a warning or something similar.

Lastly, plopping down 5% points for a marginal savings on a monthly payment might not be the most effective use of those funds, maybe being able to buy the next a bit quicker would generate a higher return for the cash.and no, I do not believe we will see rates below 5%, and the fed has never had any control over mortgage rates with the fed funds rate as that is the shortest possible rate overnight borrowing between banks.

Their concept is not new and has been around for ages with people renting rooms in college towns and more expensive markets (NYC, LA) however this is a centralized more hands off management approach to self managing by letting them do all the heavy lifting for you which allows you to scale in less time so yes the concept definitely works and even better with their technology behind it.

The heavy cleaning and repair costs after longer stays are definitely pain points but I've seen my clients make it work by screening the tenants more carefully for MTRs, doing bi-monthly checks to catch issues early, and writing clear lease terms about maintaining the property.

Fewer banks willing to give credit for imputed equity even if generated through heavy lift entitlements. 

STR Managers do unfortunately require a lot of compensation as STR's are usually a heavy lift for management.