@Loren Souers I'd have to run the specific scenarios with the rates and fees, but if you're OK with paying the higher closing costs, the Mortgage 1 deal looks good, particularly if you focus on CoC returns.

The interest rate and loan term remain unchanged.Fees: Most lenders charge a fee for recasting, typically ranging from $100 to $500.

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

What fees to charge and returns to target? 

I got more than enough up front as the non-refundable Option fee to cover all expenses and rents and to get a judgment against the Optionee.

I have no problem paying a wholesale fee if there's plenty of margin for me. 

The price points along with the insurance and HOA fees made it not a viabe option for us on our budget. 

Also who pays servicing fees. if curious to learn more reach out. 

Quote from @Matt McNabb: I'm a solid $400k/yr job in NYC and have $250k to begin investing as my first step into building a portfolio, although I don't have time to be a landlord so I have to account for management fees.  

Then do a thorough research on tenant applicants (note: leaving this to a PM may be hazardous to your financial health) and choose the one that is most “stable” with the best potential for long term tenancy.This advice is contrary to maximization of rental income, but IMO will reduce expenses of tenant turnover, property damage, property management fees so much that the difference in bottom line income will be quite small.