- The increasing cost of damage repair and potential mold growth

Hoping (SD) rental amounts have increased and renting it out/refinance if able/eating the cost. 4.

I recognize this is not the sole source of return, but the other sources have their return increase with smaller equity position. 

The biggest thing to me is buying in quality areas that will increase in value over time.

Your returns could be increased if you are willing to rent it by the room to individual students. 

Do you think the area will increase in value?

Lastly, if you’re currently taking a homestead exemption on property taxes, once that drops off (if you’re currently taking chose to transfer the exemption to your new home) your property taxes will likely increase $1k-$2k thus increasing your monthly mortgage.

Separately, the government increased the money supply by 40% with massive government stimulus and that drove the cost of everything way up (labor, materials, everything).

IF that is the case full stop - yes you are paying for something called insurance but if you have a claim the company has the right to pretty much deny coverage for having the wrong type of policy.Landlord policies are higher cost but for a reason - there is a different and increased level of risk when the house is not owner occupied.Talk with your agent and get all the details sorted out. 

This demographic is projected to keep increasing over time, so I would do whatever you can to hold onto this property (ie cash flow well).Furnishing 700 sqft with PB or West Elm (you and my wife would get along great, Bonnie) won't be price-prohibitive and well worth the cost.