In the meantime, is it still wise to insulate despite the tenant paying utilities?

I have learned however, over the years, that it is wise to consult an attorney and a CPA, both of which must be thoroughly familiar with the needs of a real estate investor. 

With your method of paying off the properties it would be foolish to keep them once they are paid off as their cash value wisely invested elsewhere, in a truly passive form at retirement, will far exceed any income the properties themselves generate.Rental properties can not be considered as a passive investment by any stretch of the imagination.

@James Wise these are all residential properties where renters are present 

In fact, it may be that the lender is deluded; thinking that that phrase may help him tax-wise. 

I am told that the average profit on a flip in Maricopa County is $10,000 (I do much better than that because I buy correctly and I don't over do the remodel)6) Remember, you make your profit when you buy (buy wisely)7) Flipping:      Fun?

I assist investors grow their wealth  and finally wised up and would like to become one of those wealthy investors.

Thanks, James Wise .

@Brett Snodgrass, @James Wise, @Michael Lee,  @Ryan Cameron thank you so much for all the motivation:-)

Personally, I am not; thus I can't quite tell you what to expect investment wise in Omaha in the rougher parts of the city.