Here are the key considerations:Pros:Potential for Profit - Through the value add component you can increase profitability on your return, typically you're buying distressed homes with built in equity, rehabbing and increasing your equitable position furthermore. 

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

If you're content with holding just this property for now then the cash flow + lower rate option may be best.Hopefully you find helpful!

I got qualified for about $650,000 so I am trying to evaluate all my options.

I can have my management company pick it up, but they’ll charge about $90/hour plus add 10% to the purchase price.We live several states away, so doing it ourselves is not an option.

Now before anyone suggests meeting with a realtor, getting an appraisal or looking at comps of recent sales to get a more accurate figure, I'm fully aware of those options. 

I feel like she has other options if she were creative and it isn't my responsibility to help with that.

I just feel I don't have a lot of options so I'm really conflicted on what to do.  

As for SW markets, ABQ is the "affordable" option as SoCal, AZ, and CO have become over valued making it difficult to find decent deals. 

Try to narrow down your options to the top 3-4.