I am guessing in Muncie the cap rate is probably 8-12% cap rate so take the NOI and come up with a comparable cap rate to determine the value. 

And because the PM is not a non-profit, they mark it up 20% and now you get a bill for $287 to change a light bulb.. seems unfair.

@Robert QuirozBuying with cash offers higher immediate cash flow, no interest payments, and less risk, but limits your ability to diversify and leverage.

FULL STOP  Your ability to make such a profit will depend on your ability to manage the asset better than the prior owner.As a seller, the broker should be helping you determine the price point, at that time, that attracts enough buyers to achieve an optimal sales price.

The way I see it is most homes will cost you 25% down and renovations out of state will be difficult or very expensive so the ability to force appreciation becomes tough.  

Both methods require finding a property that makes sense for your risk tolerance, purchase ability, etc.

Who is responsible for cleaning the construction site and keeping public walk ways free and clear of construction debris since you are in CA without the ability to monitor the site?

So you have to determine it’s lease value.

But, he has no ability to take any corrective action he feels is necessary or beneficial.  

Where are the HVAC controls and do both units have the ability to access it?