The structure is mainly appreciation-based, which minimizes tenant and maintenance risk. 

This method provides an indication of value based on the property's rents.

So - somewhere 2 hours away, or somewhere you like to vacation in, or where all your family lives, or where you plan to move someday.Too many people are trying to do exactly what you're doing - pick a market based on a formula - and they end up buying a random 'cheap' property thousands of miles away, turn it over to people they've never met or even spoken to, and then... lose money.  

On a commercial asset the value is directly based on the NOI (net operating income).

If you get 100% of the purchase price covered then you should have sufficient funds for the closing costs based on what you're saying. 

Obviously tough to give advice based on minimal info and no info on your personal situation.

We've seen 3% for 100+ unit apartment complexes, but they also have onsite staff not included in the 3% management fee.Two other pricing options to properly understand:1) Fee charged based upon tenant payments or just occupancy.

Our PM company signs various ones for both our residential and commercial landlords with similar language and base pricing.

Additionally, I created MEC (Material Estimator Calculator), a unique residential renovation software that automatically calculates a bill of materials (BOM) based on the property’s condition.Overall, I’m thrilled to escape the Seattle rain and connect with fellow investors here in Arizona.

Or a seller finance calculator showing the monthly payment based on negotiated price, interest rate, down payment, etc.