. $45k from several unexpected large repairs (water leaks, roof collapse, siding rot, plumbing main line, etc.)These issues are also causing me to rethink the assumptions in my model, increasing my vacancy rate from 8% to 12%, repairs from 5% to 20%, and capex from 5% to 20%.

If you provided AC, then your obligated to keep providing AC.Service call fees are standard for pretty much any type of contractor. $200-300 is typical in the larger metro areas.

There are also owners that buy at $30,000 home that is dilapidated, in the worst part of town, and not in rentable condition to anyone that has a job or just standards in general.I suppose there is the chance that you were done wrong by 5 property management companies, and had a run of horrible tenants, but I would wager a guess you got what you paid for. 

This allows you to test the waters without committing entirely to unfamiliar territory.Local Expertise: Leveraging the knowledge of local experts is invaluable.

How has the rehab been to your standards?

is it standard practice to charge it from the tenant in addition to the rent?

This slowed the water down but did not fix it.

Since you bought this for $5k less than the appraised value, I don't think there would be a big enough jump in adding value where you can do a cash-out refinance, and you would likely be bringing money to the table to pay off the HELOC with a standard refinance. 

Mortgage interest is only deductible if you have more "itemized deductions" than your "standard deduction."

Your attorney's advice aligns with standard practices to mitigate risk.