Minus potentially a small discount since it's an ADU?

Alternatively, I could hope that my next assignment will be in a better market with more options, maybe lower rates, and more cash on hand.Should I accept that no market is perfect and get in the game now, or hold out for a year to enter a potentially better market with more capital to invest?

That will make all the difference in the rates.

Given the current statement of market, interest rate, good turnkey providers , house prices etc…, would you choose memphis or alabama market to invest in real estate.

So yes, more expensive homes with lower rates can be different than cheaper homes in higher areas but then actual principal, interest, and insurance will likely do the off-setting. 

I'm thinking about starting at 870k with 10% down and an interest rate of 5% with a 20 year term.

At current rates probably 30% down to get to a 1.2 DSCR.As an OOS investor, you have a huge disadvantage compared to local investors and you are cost burdened by paying a PM.

It might state you are applying at ABC Bank for an 80% LTV loan with up to an 8% interest rate with a loan of $XXX,XXXSo, if you don't qualify for that loan, or you cannot get the interest rate stated, or maybe the appraisal is too low to an 80% LTV loan for that amount then you can break the deal because you can't get the financing you anticipated but instead you are CHOOSING (based on advice of the loan person) to switch lenders.

The cookie-cutter projects in Tulum have had lower occupancy rates due to various factors.

I have the highest success rate at getting my client's issue resolved over the phone whenever I call them.