After all expenses, including PITI, we net on average $700/month.

Hey Deirdre,To address your questions:Providing freedom by handling day-to-day operations.Offering peace of mind through proactive maintenance and tenant communication.Reducing risks by staying ahead of legal requirements, tenant screening, and dispute resolution.Enhancing the bottom line by identifying cost-saving opportunities while ensuring tenant satisfaction to reduce turnover.Is the experience still important when the property thrives financially?

I would also add, a contractor that you can buy materials for and they know how to put them in with little to know direction (reduces the management time of the project).

How does anyone expect people in a place with an average income of 25K a year to pay an average of $1400/mo rent? 

I reduced my responsibility to only taxes/insurance while the tenant buyer does the maintenance, pays utilities and makes monthly payments to me. 

If I were to reduce or take out the vacancy, the 2 would cashflow.

Since you know what you need to buy it at and an average rehab cost, I would say $50-70k for a cosmetic flip, set the ARV based on the sample you choose and doing comps and ask them if they would invest in a deal similar to this. 

What are the expected average rents for the 42 units?

Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k.

Real estate investing is forgiving; the average person can still make money even with some big mistakes.