A contractors overhead doesnt change neither does their profit margin . 

Most residential real estate developers have a certain operating expense margin they are budgeting for in order to make sure they are hitting their return requirements.

Or apartment owners unrealistically view EV charging as a revenue source, though the margins are just too thin.On the ground EV charging for multifamily is practical, even in retrofit, it's just not simple as there are so many options and tradeoffs.  

I'm sure others will have a different opinion, but I believe your OpExp margin of 66% is WAY too high 4% vacancy is too low.

In my opinion, the marginal protection benefit doesn't justify the extra costs and worse financing terms.

It's hard to say if a 60k house is worth 40k or 80k, that's within the margin of error based on how much do you consider condition in your valuation.The % based agent commission model does not make any sense below 100k.

I have a plan in place to use entities once I reach a particular number of properties, but the additional protection is marginal at this point.

I ran my own proforma and used an 8% vacancy rate and a 35% operating expense margin, which are the %s that most banks my clients work with use to underwrite their DSCR loans.

The other way to lower PITIA is to get a lower insurance quote but this is marginal since most insurance carriers are all priced to market efficiently (insurance accuraries have low margin of error or variability).Stated the problem and the solution to your FHA inquiries, any thoughts questions comments, lets goooo....

Saying you want to eventually "get out of Section 8" is akin to saying you want to eventually "get out of renting to [insert a traditionally marginalized race/ethnicity/religion]"