I'm Rene and I'm a community manager here at BP so feel free to reach out at any time!

In your example you’re paying 89% of ARV (Price + rehab) before counting any holding costs.  

Typically land costs will decide whether it's feasible to build new. 

I've thought about value add plays out of state but the managing of the rehab etc is turning me away.

They generally have large portfolios allowing for in house maintenance and management staff along with a point person who is communicating with the local housing authority on a regular basis and has the ability to streamline operations. 

What are the chances the owner will get my letter with a property management company in place? 

I would highly suggest using Zillows RENTAL MANAGER app.

Home prices have been amplified because of the increased costs for builders to actually build a home in the US, mainly:Inflation (materials and labor).Regulatory burdens.Let’s look at both:InflationPrices for everything necessary to build a home - including building materials and hourly labor - are much much more expensive.

Rehab costs I have no real idea, but may be $60k-$90k, again not sure until I get bids.

I currently self manage my properties using Buildium and I love it especially the resident portal and ability to accept ACH rent payments.