Mean while i would be building equity, and if rates do lower, or when the term ends, could refi for better rates and then maybe cash flow.My questions are:Is this too naively optimistic?

There are significant advantages to investing here (lower barrier to entry, much better price to rent ratio's, etc. etc.).

This can then be used as a negotiation chip in order to lower the price of the property.

ACTIVE real estate investing is an ENTREPRENEURAL activity, which means RISK - REWARD.IF - you’re happy with passive type lower risk investments, your spouse doesn’t have to “be your partner” - as long as they’re comfortable and cognizant of the risks.If you dream of an ACTIVE real estate investing career - it may work only if your spouse is SUPPORTIVE, and willing to accept the risks, which may include the possibility of being wiped out in a 2009 style depression. 

Crime in Little Rock is significantly lower than most cities it's the way the city is zoned it looks high based on the old city limits and population.

I agree that efficiency is a huge part of that equation, and the more efficient the PMC, the more they can stay profitable with lower fee structures.  

I has two GREAT property managers that immediately come to mind, one handling 5 high end high rise condos I owned in Phoenix and the other one handling a 12 unit very lower end apartment building I owned in Arlington, Texas.  

What I'm aiming for are turnkey rentals and trying to max out the amount of conventional, lower interest loans. again, the DTI income ratio will be IMPROVED if the property shows cash flow.

Sherman does seem interesting though because of the lower cost and growth potential.  

Most lower priced condo projects are not very healthy and why they are low priced.