The seller was livid because of the choice of comps (1+ miles away, 1.5 year old sales all while newer closer and better comps could have been chosen to support the offer price).

The long-term value, if the neighborhood supports it, is a 3rd unit.

Because many investments like this fail, investors often look for a return ratio that supports those other failures. 

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

You try to avoid using that as a lever but when you need it - the state provides the support.  

A well established full house management will do at least the following: guest communication, house inspections to check cleaning and that nothing is missing, claim support IF there are issues, guest screening and “party prevention”, restocking of supplies, coordination for maintenance, safety and security of the house, work with you on city regulations, dynamic pricing, manage the listing online, cleaning management, monthly reports there is a lot ... but there are great STR management companies out there providing a ton of value.

For all I know, it makes sense for them to sell them back to people who need them for rehab.)An increase in marginal yield corresponds to an increase in marginal risk, but that risk is not born evenly by investors: the ones with bad setup end up with a vacant property, while the ones with good setup can access that higher nominal yield.To support that "city xxx" is good for investment, one would need to know what gross yield, vacancy rate/average tenancy duration (there is a cost to switching tenant) and net yield people achieve there. 

@Allan C.What I appreciate most about the BP community is the support and honesty.

USDA (insured) loans were ment to support rural business development which includes farmers building a barn etc.  

Any fees should be paid upon closing as the money changes hands and be supported by legal paperwork.