This attracts a higher-quality renter, ensures funds are available to maintain the home, and reduces the risk of major losses.

If it goes well, investo more.If it goes poorly, figure out why and maybe you picked the wrong market, the wrong team or the wrong property Class. 

An STR that is poorly managed may leave the PM without his or her portion of the income, but it may set up the owner to lose the property if that cash flow was needed to pay the mortgage.

Very inspiring to see someone with such poor social skills achieve their goals so quickly! 

Let them know that there will be routine quality control checks/inspections so that if your third party inspector finds any issues with quality, the GC will be responsible for paying for the correction.These are just some theories that I think will help and plan to implement when I operate out of state flips.

Other factors such as the quality of the tenant, and location will also determine the value you can get.

Then, having covered my base, I'd try to differentiate myself, by having the best located property, the best quality property (given the price of course) and offer the best experience.

A lot of people will pay $1200/nt for 4 crappy budget motel 6 quality rooms at the All-Star resort rather than $175/nt for an 8br themed out mansion with a private pool, theater, and $30,000 arcade room.To answer your original question on investing over a long-term period, that is really this market's main strength. 

My interest was sparked this summer after passively listening to a free version of "Rich Dad, Poor Dad" while doing home reno projects around the house.

For someone that's not as conservative, or a different view on the cycle, they might have a different opinion than me on all of this.2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).