You have to factor in demand and vacancy rates to determine if it will be more profitable, and that’s specific for each market.

Heck, some people might even pay more for the 'cool factor' of living in a 'small home'....I'd give it a go since you're a veteran of this RE stuff.

You will also have to factor in the closing cost for the new loan.

The systems you have in place to handle leads, follow-up and your sales processes are also huge factors.Another factor is what is your monthly marketing budget?

I think another factor here in determining whether its a good investment is your age and your goals. 

. :)  these are not credit score loans ( I mean I have a credit score) but thats just a formality its all about capital and relationships with your bankers and deposit relationships thats key as well.Yes your relationships with sub contractors will be a huge factor in profitability, both direct and indirect. 

But I've hit the annoyance factor most reach in their 50s when owning rental properties about 20 years sooner.I am at work coordinating inspections and post inspection, was the appraisal done and could you email it to me, this lender gave me a 3.25% rate while you locked me at 4.0% LOL all of this and I haven't even started receiving a dime of cash flow.Illiquidity is the best feature of passive real estate investing, the 2nd feature being diversification (among asset types, exit strategies, sub-strategies, geography, risk, sponsors, etc.) you cannot do this if you are actively managing rentals.When you are 65-75 years old planning your estate, do you want to leave your heirs (who probably don't know or don't want to know anything about real estate) a bunch of physical houses, tenants, property managers, mortgages, online logins, LLCs, etc.

So, factor that into your thinking about whether its the right choice for you. 4.

When it comes to finding a good insurance agent, I think that a huge factor is responsiveness. 

As a family-run business we’re curious—what factors do lenders prioritize most when evaluating projects like ours?