Lower than that?

Will you get a lower rate waiting? 

This can then be used as a negotiation chip in order to lower the price of the property.

I agree that efficiency is a huge part of that equation, and the more efficient the PMC, the more they can stay profitable with lower fee structures.  

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.

You'll get much more "bang for your buck," lower cost per key, and lower maintenance costs per unit.

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.  

Again, different strategies but in my opinion the larger you get the lower the risk you want and as others have pointed out I think your deals in the build to rent sector or with larger tract builders is where we focus and probably others as well. maybe this was a special deal. in a few weeks once we get the appraisal back on an infill lot we have I'll show you how we made almost a million dollars on a site that's 0.1 acres and urban with very little risk backed by appraisals. we didn't have to wait 18 months or invest 500k either. we barely needed a capital partner too and every deal we entitle we would develop.

Also see if monthly gap might be lower as a mid- or short-term rental.

@Mario Morales - Personally, I would do some research in your target market and search (even it on zillow) for 2-4 family properties and see what agent(s) seem to transact the most in that space.