There are also often incremental fees that will lower your returns on these types of investments: property management and building fees most notably.

Hopefully I'll see some lower rates than 10-12% 

May not matter for lower end rentals.

I was completely wrong about being able to live with other tenants in the city and am really embarrassed and devastated with this situation.I got a lower down payment loan (10%) and good rate for this property with the intention of me living in it but I already know I can’t and am honestly panicking in tears.

Lower vacancy rates and higher average household incomes should result in less turnover, or at least less damage expenses.

So lower cap rate the higher the price.

Should we remove the real estate agents from this transaction?

Personally, I've tried to sell on contract in lower-end type communities which attracted a less than desirable type of clientele.

To me, this sounds suspiciously like a work around with lower entity costs.    

While the $135K note qualifies for section 453 installment sale treatment with the gain spread out during the payment period. 1) Is my understanding of this transaction correct?