Unless it's cost-prohibitive, I'd remove it for the same reasons people have stated: 1.

At the end of the day; you need more money to do something like this.MAX LTV on new builds is 80% LTC, Meaning if the build is $550,000 and Land is XAdd ($550,000 + x ) * .8 = LOAN AMOUNTYou would need to come in with MINIMUM 20% of the cost in addition to closing costs and reserves, $80,000 is not going to cut it for this project.

Negotiations focused on securing the property at a favorable price, enabling us to achieve a profitable margin in a highly competitive market without requiring additional renovations.

For a conventional loan, you can borrow UP to what you paid for the property plus closing costs OR 75% of the appraised value which ever is less.  

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

This will cost you money on the back end.

This will give you one critical piece of information, that it may take X days to get an offer and sell, and the second item will give you what your competition is right now.

My model is NOT good for LTR as it's not cost effective. 

But if borrowing costs remain high and interest rates don't fall as many people expect, cap rates will have to decompress further. 

They use leverage in some of their funds, which can increase returns, especially if they have a low cost of capital (but potentially increase risk and trigger UBIT issues).