More relationship underwriting with local banks.7% interest, 25yr am, 20% downEasier to scale, easier to manage.

I've stuck with the tried and true reasons I've heard to keep my search ranking high (quality photos, stellar reviews, updates to my listing) and that helps but in slow season, when I'm not willing to cut my rates as much as some of my competitors, it can be a ghost town.  

Even if it slightly reduces cash flow, a good property manager is worth the investment.

If they won't replace the walls with the same quality materials they probably wouldn't do it for counters or floors either.  1.

@Tove Fox hope you find this copy & paste useful:)-------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Without the upside of a good neighborhood and/or quality property, I don't love it. 

What decision is your significant other leaning towards, what stress is in your relationships?

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

Try to screen for a higher quality tenant next time.

The penalty can be reduced, but there's a fee (or you take a higher interest rate).