When you build enough capital/assets/net worth to afford a reasonable monthly cushion you can see if the lifestyle of a full time investor is something you’d want to pursue.  

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

We were initially looking out of state for a potential move and or investment property just because the property taxes without being able to homestead, plus high cost of insurance, and harsh weather on homes made me feel like it might not be worth it.

Well I just brought them a portfolio for $3.4 million worth $6.5 million and now they don’t do this kind of a deal.

In short, I’m trying to figure out if it’s worth pursuing an off-market seller financing deal versus getting a traditional loan and competing for the property on the open market.

This will give you a clear understanding of its rental potential and whether it’s worth it as an investment.

Overall closing out 10 months with Pricelabs I think it is worth it, but I still spend about the same amount of time adjusting rates everyday (10 to 15 minutes for 9 properties).

.- >65K in rent collected- having someone to bring in Amazon packages when it is raining outside- generally having someone to watch over the property when out of town oftenI think the headache is worth it.

Use softwares like AirDNA and Pricelabs to get an estimate of what you could be making and see if it's worth it.

Whatever you decide on your next investment, Little Rock is a strong contender worth considering.