My thought is that for a SFR or Multifamily renting for $1k month, after expenses and mortgage payments, hiring a property manager is too expensive. 

There have been no cases of popcorn lung ever attributed to vaping.

What are the major macro economic factors that attribute to your attraction to that submarket? 

Yes, getting a proven, vetted, competent and capable property manager is key.

I'm assuming that an on-site manager is not as effective as an experience PM company in the area?

Almost every realtor can find you a house or small MF deal, but very few really know what they're doing. (2) having a great property manager. I

The comps the appraiser was using did not have the same attributes my buyer/ tenant was looking for though.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

I agree with Jay Hinrichs and Steve Vaughn regarding the value of a good PM, and I attribute much of my success as a RE investor to a great management company that has managed my properties for 12 years and oversee them as if they owned them personally.

My over 9 years of experience as an REO Asset Manager is an added bonus because I've know how to manage rehabbing properties throughout the country.