Quote from @Nick Am: @Michael Plaks--> The SE taxes are STRICTLY NOT in addition. 

You can fix this by talking to the utility provider about creating "equal billing" or whatever they call it in your area.

Section 8 would tend to carry higher repair and as a result, additional vacancy.OP’s definition of cash flow is rent minus piti.  

I wanted to help them out and minimize their loss and saw an opportunity to get a property slightly below market because of my commission savings, immediate mortgage and maintenance relief, in addition to keeping a lower short term interest rate How did you find this deal and how did you negotiate it?

Additionally you can do a cost segregation study and get a lot of depreciation benefits to offset the rental income (and potentially other income).  

This continued imbalance in housing supply to household formations and population growth.Changing Demographics and PreferencesPeople are also waiting longer to start families (Source), and people are valuing more the flexibility that renting provides in the remote work and online business era as well as the sense of community apartment complexes can provide in our digital and post-pandemic world where people feel less connected to the community than before (Source).

Instead of losing 55k they will probably only end up losing $25,000 - $30,000Long term its not a great cash flow property but with some renovations and addition of a parking slab I think long term appreciation is the big goal here.

All this in addition to 6 other lease violations... 

The listing agent is not providing any services, just the MLS listing.

In addition, Pace Morby's team could have systems in place to vet the deals for which loans are sought.