Even though I'm over paying, I get cashflow plus I'm gaining $1160 per month of principal reduction starting with my 1st $2100 payment.

After the reduction if they were to get it now, it would be 2500 or so. 

This really could be an opening of light, a reduction of stress, buy a bit of my time back so I can focus on growth instead of just keeping everything moving.      

And starting out, with self management, it’s OKAY to not count the property management fee….I know that’s un-popular on BP but I feel like that thinking came during the era of deals being bought during 2010-2015 when everything was low from the last crash and doing nothing but go up during the last bull run….I used to worry about every penny on net cash flow and for me, it was a type of analysis paralysis…..investing beyond cash flow has set me free and let me factor in so many other things like appreciation, equity growth, and reduction of taxes paid especially being self employed now… That is WAY more than you asked me….but I am just saying keep doing the analysis but man at some point you will only know what the net cash flow really is by having something giving you CF….and in reality it is not always perfectly predictable - someone loses a job and stops paying, breaks a lease, a hot water tank goes out, etc, and it wipes out CF for awhile and doesn’t fit into the perfect 5% capex / vacancy reserve formula…just my opinion.   

How much reduction is there on average for the ROI? 

I’ve noticed that as well, if a house is priced right it flies of the market… the over priced ones are doing all the reductions.. some sellers were hoping to catch the last train of 2021-2022 market prices. 

Personally, I don't like deals without a preferred return because there is a reduction of alignment of interests.

Between price reduction and concessions we got it down from $375k to about $362k.

Any of the Realtors could have sold it at that price, they just didn't have the insight to properly price it.Lets not forget to mention that often the top listing Realtors dont have a problem in pressuring you into price reductions.

I think we have our place priced right and I just increased the nightly for 2022 with zero reduction in bookings.