When tenants and owners feel cared for, word spreads.

Remember, this is still a sales type of business so be very careful on who you choose to work with.

.- Most cities do NOT care if an owner lives in basement, but will not allow a tenant to unless baement has legal egress window.3) Check local statutes if any limitations on how many unrelated roommates are allowed.4) Check with local building dept to see if rental inspections and corresponding requirements.5) Local statutes allow locks on bedroom doors?

Your tenants need to buck up and take care of the bugs.

Better to have your own property manager use trusted handymen to take care of the issues for long term/quality fixes. 

Because parties to a transaction care about things OTHER THAN the price of service alone. 

If there is a minor stain in need of cleaning that gets missed they can take care of that.

Since they notified you of this, you should get it taken care of as your insurance may not cover a claim if there is an accident because it was a known defect.

You'll want to hire a licensed loan servicer to take care of that for you (Provident, Madison, FCI, etc).

The short answer is I look for 9% min and try to press it to 11% with those strategies along with rental increases once improvements are made and the tenants know you actually care about the property.