I understand that rural has the possibility to have lower traffic.

My goal is to have a better product at a slightly lower price.

What's better a higher amount of line of credit or a lower interest rate?

My main question is, do property managers typically charge a higher percentage on units that have lower rents?

 $40K Purchase price and $255K Rehab ($295K total) is already over the lower amount.  

If you do it the other way your refinance will be based on a lower value.

@Tarik Nabi Are you getting lower purchase price by paying cash if no why to pay double closing cost unless you can't get loan because of rehab requirment.

These offers have a purpose to outlay the following circumstances: Offer 1 – asking price with traditional financing, offer 2- offer based on NOI and local cap (what would prob be norm if they took to market), offer 3 – lower purchase price (higher than NOI/cap offer but below asking), using 97% seller financing & preferred terms (don't know what they will say unless you ask :)).Buyer Performa used for all offers:Scheduled Rent: $3,900 Tax & Ins.: $850 8% Vacancy Rate (average is 7-8%) 4% Management Expenses 10% Capx/Maintenance (I’d prefer 15% but I’m ok with this giving value add opportunities I've identified) Offer 1 – I want to show the seller what their ideal deal looks like with their asking price and how it doesn’t work with traditional financing that creates negative cashflow for buyer.Purchase Price: $400,000 Down Payment: $80,000 Loan Amount: $320,000 Loan Payment: $2,292 monthly (bank with 6% and 25year amm.)

Lower end properties are more susceptible to extended vacancy, more likely to require evictions, higher turnover costs, etc....

ROI is lower with cash.