I really enjoying the thought of building, but it is a big task to take on.

You can only break the lease if they do not perform, i.e. late rent, noise, etc.You can always give them an incentive to pack it up.Good LuckGino

I have no issue with the points and fees, but can they perform for you or are you going to end up stuck with a hard money loan and rate you cannot get yourself out of?

afterall who knows more about the performance, condition and track record of a property than the PM. who has been managing it the past several years??

Can you perform a double closing/ simultaneous closing/ double escrow?

How are you performing your MFR search? 

New equipment just like a new car performs better and has things older equipment does not.The old freezer the compressor,seals, etc. are all getting toward the end of life expectancy.

In probably less than two years, you will likely be in a position to refi, combine with the savings you have generated over this time, move out and repeat and have a great performing asset on your hands. 

I recently purchased a performing first which has an outstanding HOA lien attached. 

So the place has to be in decent shape, which means you pay a little more.I use the 50 percent rule, which includes PM.I do self manage, so my numbers look closer to this without the pmPercentage of gross16.5 percent for taxes and insurance5 percent for vacancy10 percent for capex10 percent for repairsright around 40 percent give or take.Which is around 280 a month in cash flow.How is your indy properties performing?