Usually OH and IN are the two main states they I have seen booming business in for 204 unit REI's.

I know of a lender around 7.3%, but curious what everyone else is seeing.Keep in mind, we're talking DSCR, not conventional.Local commercial banks are usually most competitive for this space.

But the perception of difficulty is greater than the reality usually.

I can quote from over 100 lenders instantly, but usually only work with fewer than 30 in a given year.

A 2 +1 is a legal 2-family with a boarder unit that can be lived in by the owner, usually without a stove and you want to make sure the bathroom is permitted.I hope that helps.

I've lived in Alaska, Idaho, Utah, Arizona, and California(current residence), and analyzing deals in my "back yard" at each location usually ends with me paying out of pocket to own a rental. 

Based on your description, if you take on responsibilities such as decorating, marketing, bookings, and bookkeeping, you could potentially meet the hours required, even with a property manager handling on-site tasks like maintenance.

Most sellers only care if you close so you can usually use another form of capital stack other than what is on the agreement, however, the seller can force you to use the originally agreed-upon payment method. 

Top 3 reasons owners hire PMCs:1) No time to manage correctly2) No time to learn how to manage correcly: laws, documents, processes, etc.3) They're too nice and need someone to "save them from themselves"A good PMC can usually earn their fees by better managing the property/tenant than the owner, thereby:1) Increasing owners net profit2) Decreasing owner's time commitment, stress, headaches, etc.No matter what though, you should always plan to commit a couple of hours a month to manage your PMC.

I find that usually weeds out any problem guests.