It is similar to this HD carpet:https://www.homedepot.com/p/Ho...I have had carpet in rentals for years and the bedrooms have near zero wear.

They are responsible for paying property taxes, HOI and HOA fees, or we can configure the loan to pay the taxes/insurance also. 

You seem like you feel guilty for raising the rent, the truth is your not the only REI there that will have to do this.The HOI is insane there,  therefore that costs gets passed.

I currently have them owned in my name and have umbrella liability insurance in addition to my HOI. 

@Hoi Lee and others.

So after the appraisal, title hoi is back…?

We are currently netting about $200/month (after taxes, HOI, utilities, etc.) even with one of the units owner-occupied.  

Close enough to University of PA and HUP which combined is the largest employer in Philadelphia. 

I decided to keep the previous home and rent it out; I have held rental property/landlord insurance of $80/mo on this previous primary residence, but I see that my Escrow account still pays $80/mo in homeowners insurance.I am trying to navigate this with some sensitivity, but wonder if I can cancel my HOI within the escrow account since I am paying rental insurance with a 3rd party.  

You will need a bunch of docs: bank statements, entity docs, HOI policy, etc.