I would target a 2.5x equity multiple and 8% cash on cash return, but I would focus mainly on the operators and try to figure out if I believe in the team and vision, and really try to understand if I trust them or not.

I still need to do a deeper dive, but the ownership structure was one of the external factors that I was thinking about.  

Mainly because many seconds the rate on the note is a few points higher so greed takes over with no real understanding of the risk..

Of course you have to factor in realtor and closing costs on top.

You could tell them to cancel the listing and you will find someone else to list it after a month not 4 months (the market take is subjective too, all dependent on what your house has compared to others, where it is located, the size of it, and so many other factors).

You can probably beat $2000/year insurance, but the management fee should be 10%, you need to factor in turnover too and 5% is probably not enough for both maintenance and turnover and I assume you added it, but you didn't mention property taxes (which have been terrible in Jackson County lately since Frank White decided to jack them through the roof). 

I mainly was curious about what legal grounds we have in order to proceed, since the PMA doesn’t specifically state “agent won’t grant criminals unsupervised access to your vacant property”, I figured that was just given!

The biggest factors, from what I can tell, are age and rebuild cost. 

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.

I focus mainly on buying deals and working with partners for said deals.