Of course these are averages and depend on condition, finishes, etc... but I think it illustrates the point.Some of that extra stuff you mentioned might slide the lever more towards the condos.  

Well the account is closed but boy does that situation and question posed illustrate the need to surround yourself with a good advising team on all fronts if you want to be a successful real estate investor.  

(An example of a B+ home in a tertiary market that was purchased for $82,000 or so last year and rents for around $1,200 per month - not for sale, illustrative purposes only).You see these markets don't have enough inventory for the big boys to have critical mass, they are not scalable.

This is a fairly simplified example but I think it illustrates the point.Good luck, and yes leverage your relationships to create win-win scenarios.

@Christopher BrainardAll good points Christopher.To illustrate one example: The Los Angeles area market has seen about a 34% price increase since January 2012. 

Also to reiterate my PM concerns I was looking at several invoices for one of my properties and here is what I found to illustrate the miscellaneous repairs that seem overpriced to me:  3 - Repair - Tenant called and said that his mail box key is no longer working.

The following examples illustrate suspicious commercial real estate transactions or activities likely conducted to facilitate money laundering.1.A U.S. bank reported that funds were being transferred between several real estate- related accounts in a circular fashion for no apparent legitimate reason.

This appears to further illustrate the point mentioned in other threads every day. 

Figure 2 illustrates the negative treatment MSRs receive under the Basel III capital rules. 1 “FHFA Actions to Manage Enterprise Risks from Nonbank Servicers Specializing in Troubled Mortgages.”

FNMA would have a difficult time selling the property now as the condition rules out anyone getting a loan This is another thread that illustrates the importance of having a great agent.