Shortly after the crash my tenants learned that condo developers were renting out luxury apartments in the area for around the same rents I was charging so I was forced to lower rents. 1200/apt 2 1050/apt3. 

You will also have to factor in the closing cost for the new loan.

Heck, some people might even pay more for the 'cool factor' of living in a 'small home'....I'd give it a go since you're a veteran of this RE stuff.

When you work at a large corporation (national or global) you learn a lot in your role, but also by osmosis, just by observing other people and seeing how projects are developed, business is done etc.

I think another factor here in determining whether its a good investment is your age and your goals. 

When it comes to analyzing properties, I’ve developed a specific checklist to make sure the home fits both resident needs and operational goals:Square Footage: Ideally, at least 2,000 sq. ft. to ensure enough living space for residents and staff.No Stairs or Pools: It reduces liability and keeps the home accessible for everyone (this is just my preference).Corner Lots: I love corner lots because they often provide extra parking and outdoor space—both of which are critical for families and visitors.

Credit is a factor as bad credit may limit options, or may have the lender require you to put 10 or 20 years of taxes and insurance into escrow. 

To meet this requirement, you must spend at least 750 hours per year actively participating in real estate activities, such as property management, development, or acquisitions, and these activities must constitute more than half of your total working hours for the year.

The systems you have in place to handle leads, follow-up and your sales processes are also huge factors.Another factor is what is your monthly marketing budget?

If the developer can do better than 35%, then the deal becomes even more profitable for them.