I'd have to sacrifice my cash flow or cheat my operating expenses, or both, in order to make 1% work.

My opinion doesn't change, this could be a very expensive ommission.  

They use more expensive subs because they don't have to manage the project. 

Wow Nick, that definitely sounds like a bold step you took to drive cash flow, but I'm glad to hear it paid off.

You also have to think the longer that tenant is in it, there will probably be some more expenses when you sell. 

I fought it, paid a LOT of money to get the work done.

In the area I lived the properties were too expensive (Watsonville CA) so I began doing farther searches out of my area.

We're an appreciation market, not as much of a cash flow market here, unless you're putting a large down payment or actively managing STR's.Buying out-of-state can get you more cash flow, but the tradeoff is less appreciation (usually), and cash flow can be eaten up by maintenance and expenses.

Personally, I bought a 3 bedroom house as my first purchse and lived there while renting bedrooms and 2 bedrooms rent paid all of the mortgage payment and 2/3 of the utilitites.

Basically - I want a PM who keeps the property in good shape and occupied to get paid, and a PM who is either bad at maintaining properties and finding good tenants, or just really unlucky, to not get paid.- PM charges 8% of rent, which escalates to 10% if the property exceeds 95% occupancy with rent collection. - PM charges minimal fees.- PM is contractually obligated to perform annual maintenance/inspection to keep property in top shape. - PM provides a cash based accounting report every month, for every unit under management, that clearly labels all rent, all expenses, including management fees, and the net directly ties to the amount of money deposited into my bank account.- PM is a licensed handyman, or has them on staff, and takes care of most unit turn work at a reasonable rate. - PM has no breakup/termination fee- PM does not take project management fees, except on large or complicated CapEx projects exceeding $5,000.