It can create a toxic environment for the other tenants in the building as well. 

Also I would like to have the peace of mind knowing I have at least one property that I own out right, considering I’m new to the idea of real estate investing.  

Also, 5-6% gross yield in a non-city environment doesn’t sound very competitive at all for single-family home rentals or multi family.

Some agencies just want to see the boiler point stuff in there and make sure you are not acting with out compete disregard for the environments.

In a highly competitive environment, a good market, etc.

Response: Please have the doctor prescribe or recommend that their current living environment is not suitable for them for health reasons and I will happily release them from their liability. 

First, Newark is still an urban environment.

At some point though, having good protection may be a cost and hassle worth paying for, even if just for peace of mind. 

Now as far as renters insurance, you should have the letter from the company they are going to use prior to move in, some require it a week in advance so they know the property is going to be insured by move in date, that can go for all utilities as well, so you have peace of mind that all the important things are taken care of. 

Also do what you are comfortable with, don't overextend yourself in a way you aren't comfortable with just because "the math" says so, your peace of mind is worth more than that.