If you dont always want to manage it I would still factor in PM costs so you know if it will still work when you decide not to manage it anymore.

As stated above, cap rates are basically risk factors.

The Austin market is still going strong and we live in a very desirable area.We *could* roll up some debt and take our mortgage to 284k.This would increase our mortgage payment by 566/month, but by reducing the monthly minimum payments with the debt disappearing we would gain an additional 1000-1100/month (after the 566 is deducted).I'm also aware that mortgage interest is something we can deduct from our annual taxes vs. other debt which we can't...This is not our forever home, but we've had so much equity in our home for so long that I can tell I'm fearful to cut into our equity, but I don't want baseless emotion to make this decision and keep us tied to something that we're not looking to stay in forever.

You might also factor timeline into this equation.Keep in mind that you aren't wrong about multiple doors under one roof, however, many other people have the same feeling you do, so that commodity in the market might be hot.

*Another KEY factor that a lot of people (including myself until I actually did a bunch of deals) overlook is rental supply/demand in a market.

And this factors into an IRS safe harbor. 

But turns out took forever to sign addendum, like two weeks.

Looking to get some clarity on this matter -- a lot of people on BP suggests a percentage method, which I think can be a miscalculation for cheaper and older SFHs because a lot of capex is fixed, but rental income, size of house, vintage of house, type of neighorhood factors into the calculation.

This may play a factor in the strategy on how to handle this situation.It doesn’t seem like there would be reasonable time for the seller to make a proper repair before closing, so best approach would be to request a seller credit.

I would have never guessed that would be a factor.