They are planning a cash out refi (which is non taxable) which I'm including the reinvestment into the IRR. 

If the profit margin is tight and $500 makes a difference, see if you can save $$$ elsewhere.Interest rate buydown or seller assist is common place thanks to the jump in interest rates. 

Get rid of debt, build a budget, and save.

It increases your risk and isn't a wise method of investing.Take the $1,200 a month cash flow and add it to your savings.

So, this skips the need for a cash out refi (saving that cost and avoids seasoning issues) 

Quote from @Jason Weber: I am curious to know how many properties/units this person is managing and how much you are saving by hiring them instead of a professional property manager.Management involves a lot more than collecting rent, showing vacant units, and turnover.

I joined Bigger Pockets because I plan to House Hack a Duplex in Missouri.

Getting a longer amount of time or changing the ratio can make a big difference in our chances of success.In order to get better at bargaining, I've come up with plans that work.

Yes, it's possible to manage an out-of-state short-term rental without a property manager, but it requires careful planning and the right tools.

Just saved a client from them.