I tried calculating value based on NOI and cap rate (see below) but I'm new to this and the value seems to come out lower than I would expect.

I think investors need to have the correct expectation going in or they will be disappointed regardless of who is involved.

(Not a lawyer so this is not legal advice) You've listed all the reasons why people fire property managers, it sounds like they've just done a poor job of meeting your expectations. 

The only time I'd say it's an okay idea is if either: The area you're investing in is expecting so much appreciation that you will easily profit off that (watch out for mortgage interest though...the appreciation needs to be higher than what you pay in that and expenses to make it profitable)You have some specific reason for wanting to do it- family ties, future home, major long-term hold, etc.Maybe I'm forgetting another one, but those two are all I have for now...

Quote from @Evan Polaski: @Chris Seveney, I hadn't looked at any details on this offering into now.Things to consider from their own marketing:Operating partner has done all of 10 flips.Their entry price point is a price that I would expect any truly experienced flipper to be able to take down very easily on their ownTheir historic IRR, while high by MF standards, is average, at best, from my experience with flips, and it is unknown if this is net to LP returns.I have flipped homes myself, so am not their target investor.  

With 4 rentable rooms (including the basement), I expect to generate $3,600/month with full occupancy.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Over a 3 to 5 year window.Our self storage developments we expect a 400% COC return in 2 years.  

I would expect to be at 90% full myself or worst case 85% since it would be in a better location. 

Expect to pay 4.5% once you account for village, town, school and county taxes.