Hope that makes sense... visualize me doing air quotes if that is helpful - "no PMI." :)

., Your property has central heat/air, and most in the area don't) but I would caution against going too much over the average market rates. 

Safer hitting singles and doubles than swinging for the fences... with a chance of catching nothing but air.  

Cozy, paylease and about a thousand other solutions out there.

Simplistically, with condos all that you own is the use of the air gap between the walls of your unit and an undivided interest in the entire complex.

But I feel like he's being delusional and just picking that price out of the air (which would cost us potential sales)?

Closer to the Air Force Base than the lake.

dont forget that hideousness3. 1200 a month is going to be paid with a voucher, no market tenant is going to pay that here. and this is the massive variable in your formula. house doesnt look horrible, though definitely a half-hearted rehab (wire mold, poorly designed bathroom, carpet)4. 4x4 isnt  bel air edision. this is in the 4x4

I'm currently active and have another 7+years in the Air Force remaining.

Hi Purchased a small house to use as a Air BNB rental.There were bare concrete floors and no window coverings when we got it.We hired a local flooring contractor to put tile floors down.I asked to get an estimate on removing the counter tops in the Kitchen and remove the tub.Got the call that the floors were done.Yup the were and our counter top with the back splash and bathtub were also gone.