As for investing in an MTR in Austin, you've chosen a super cool town that is uber popular and the costs reflect that.

Method 1: You would execute via Sec.15 by giving a 30 day written notice to terminate lease and then draft and send the tenant a new lease agreement reflecting the new rent.

Obviously it varies year over year as it reflects the market.

My 'turn-key' property has racked up $12.2K in maintenance over 5 years, 33% of gross rent.After reflecting on the overall scenario, I realized that Mike didn't really care about providing me with a solid product. 

I am reflecting on the process and am trying to determine how I would go about this in the future.

WHO you buy from often reflects WHAT you're buying. 

Since the costs will be lower the asking rent can reflect that.

This reflects a balance of risk and effort.Tiered Split: You can structure the deal so that the investor gets a certain percentage (say, 70%) until they've recouped their initial investment, and then any profits beyond that are split 50/50.

I like to hear you'all your reflections.  

The cap rate is merely a reflection of the risk in the asset and market, measured against other assets and markets.