Air might have lower fees to the end user but I just don't get many bookings from them unfortunately.

My wife and I are looking to buy our first home and want to make use of the house-hacking method to lower our expenses and start to build real wealth.

Homes in nicer neighborhoods that produce consistent (albeit lower) cashflow, appreciate and are able to be left as a legacy will be in different neighborhoods and/or markets.I'll finish with a comment on turnkey providers. 

If there's an appraisal it might very well come back lower than 125k and kill the deal. 

It does not make sense to lower your rent because he was living alone (assuming they have not been living there from the beginning without your knowledge) so I do not understand your logic from the beginning.

.….Yes....I re-ran some numbers once I received the Lot rent and my early assumption was a little lower than the reality. 

It takes longer to sell them and those with money tend to want to pick out their tile, paint colors, etc more than those on the lower end.

No mater how well you screen tenants, or work with them when problems happen, lower blue collar folks have more problems that can't be fixed by a lender dropping payments. 

He has been working on getting it refinanced to lower the monthly bill and has made little improvements here and there.

Any reason not to offer 100k or lower, in light of the work involved?