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

More than likely the asset will in a location where cap ex & management/operational costs are disproportionately higher and therefore your expense ratio will also have to be adjusted to a higher number.  

In my opinion, even if you partner with a local PM company or turnkey operator your returns will drop significantly.

Over time, rents may increase, improving your cash flow, and you’ll gain equity and valuable experience managing tenants and property operations.

Are you doing the work yourself or what is your plan on tackling the operations? 

I do not know PL too much but I know it is the most popular for small unit count operators. 

This approach will help preserve your operating capital.

I just mean to say that I don't think there is anything wrong with their business plan, their operational expertise, and so on, so unless something melts the economy down, it seems as though Brian integrity of the operators is the only remaining variable. 

Sounds he’s not interested in going through the rent up stage and being an operator.

However, I enjoy the more operational side of flips and would like to grow my business out of state to increase flipping volume and have less competition in finding deals.