Some of the units need extensive rehab so a PM that can handle everything would be great.

One who specializes (extensive knowledge) in REI stuff. 

We looked into both options pretty extensively.

For instance, Phoenix and Nashville aren't going to offer much for cash flow.

For instance often I go through properties and the basement has a little mold.

And things weren't always perfect -- things that you'd expect to happen in normal course of business, happened, for instance the initial deal fell through but then another option came up after that.

Every bank has nuances to their product, for instance, the one I have locks in whatever balance I have at the 15 year mark, the line of credit closes and it begins to amortize like a 20 year mortgage.

There are mixed reviews on whether this is a positive or a negative, but if the other factors have been met, this is another great sign you've found a company dedicated to providing a quality product and resident to manage.Also, even though some of the prices look like there is a premium in price point, you have to find the value in the services being provided: Extensive research in the submarkets in their city, leasing services, value add to the property, and property management.I hope this helps start the convincing process.

Usually this is not an issue unless you have done extensive renovations or you expect a very substantial appreciation. 

(For instance, almost no one fills out the application 100%.)