Is this normal cost or high?

Rates are high, usually in the high 8s or low 9s, and you may pay 2-4 points on the loan. 

For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO I agree.

Demand is very high, both for rentals as well as for sale and this is probably not going to change.

Also, there is a need in the marketplace for a co-living PM company that doesn't charge too high of rate. 

@Jerry Chilimidos,Ned is correct, if you end up refinancing your rentals in the IRA - your IRA will be subject to UBIT tax on leveraged portion of the income so be sure to run the numbers with you CPA to understand the tax implications. 

I see two high end homes for rent, 50k, 70k, 210k per month..

The operator may trade off the longer term benefits to keep a high quality tenant in place.

Is it possible that at times you lose money (such as soft costs - paying for property inspections for example and the deal ends of falling through)?

Some PM companies take on higher end stuff (think Cul-De-Sac neighborhoods) and some focus on the hood.