I am currently basing the rents on the comparable local market with 2Bed1Ba with roughly the same sq footage . 

At the same time take a look at properties out of state and compare returns.

No movement, no buckling or damage with a large family & dogs.

This is low as compared to SFH.  

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

For one I'm not absolutely sure this is all the data needed to decision on this deal, and also I'd like to know what you guys think about the 1% and 50% projections and how it compares to the actual cash flow after crunching the numbers.

This deal was interesting because we were under the time constraints of the 1031 exchange rules, we were rookie investors looking to cash flow while minimizing those costly rookie mistakes, it was a sellers market and COVID's grip on the economy and the movement of goods and services had such a negative affect on the cost of materials that we decided the BEST case scenario for us would be to land the funds in a turnkey property that was cash flowing immediately.

This deal was interesting because we were under the time constraints of the 1031 exchange rules, we were rookie investors looking to cash flow while minimizing those costly rookie mistakes, it was a sellers market and COVID's grip on the economy and the movement of goods and services had such a negative affect on the cost of materials that we decided the BEST case scenario for us would be to land the funds in a turnkey property that was cash flowing immediately.

As far as the home prices - you also have to consider how low rates are right now compared with where they've been historically and where they might be.

How does commercial compare to Long term rentals ?