I both self manage and use outsourced services. 

Many times, they waste energy and their time on things which could be outsourced.

Talking with sellers and structuring deals is not something you outsource offshore to a $3/hour person. 

My experience as a very active portfolio lender:- LTV 75-80%- 1.20 DSCR- Global Cash Flow > 1.20- Property management overview (outsourced or self managed)Sometimes it is easier to get started with a local lender and stick with them.

You must work out of a licensed location and can't be working as a temporary service or outsource company."

My wife and I had to do most of the work on our first flip (all flooring) and outsourced the kitchen due to a load bearing wall that needed a cross support beam and permits. 

; I have now outsourced that work to my new accountant --- to make my life easier. - If you do get audited, hire a CPA or even better – an EA/enrolled agent – to represent you.

What happens when a major job provider outsources tons of jobs?  

Also you need to see if the PM is going to charge a rental placement fee many times this can be one months rent.. and a lot of times its outsourced.. but you do need to account for it.. with rentals in these areas 18 months I think is average.. so you are going to have placement fee's  lets say at least every 24 months on average.. so something to think about.. although for napkin math at a 1150 rental.. if you use 40% or so for fixed overhead you should be in the ball park.. as the rent number goes down you may need to move to 50% or even 60% to accurately capture run costs.Also its important to note in these homes that are being sold they have no rental history to guage them by.. like you would have buying an apartment.. so you could get the tenant from He@@  and your cost are higher.. you could get a fantastic tenant that lives clean pays consistently and lives there 5 years..

@Ned Jackson  you would be shocked at how quickly tenants can trash units.also lets look at this logically.your a local PM you own the company you have 500 units you manage.. that will entail a secretary ( usually out source placement for a fee to the real estate community maybe a combination) you have a full time maintenance guy maybe two.. but at most you have 4 employees.now vacancies being 5% generally in any market your dealing with 25 turn overs a month.. but lets say your market is spectacular and you only deal with 10 or 15 a month.. those are going to be time intensive they require full inspection.. section 8 which takes time to coordinate if your doing those. get bids talk to owners etc etc..