You'll get much more "bang for your buck," lower cost per key, and lower maintenance costs per unit.

Most of my units only cash flow a little bit but because I bought smart and have renovated wisely there’s not much maintenance and very little time-suck for me.

I ASSUME you’re talking $400+ in extra expenses for providing water, power, sewer, gas, internet, communal area cleaning, and exterior maintenance.

(My market has 2.5% property tax and I am assuming 2.5% for maintenance) and a 6+% APY for an investment property.

Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more.

Our current manager is in Huntsville and it is becoming clear that we need someone more local to Cullman who can be on top of showing our listings and taking charge of maintenance and repairs as needs arise. 

Plus, other routine tasks like transferring loans and providing payoffs were way more difficult with them than it should have been.

Like deferred maintenance, (bad roof, worn out water heater/AC Unit, warped flooring, water damage) etc, unpaid utilities,  unpaid taxes, a second loan, unpaid HOA fees, a bad pool, bad reputation, sometimes squatters, sometimes they were drug houses, and so on.

I personally inspected the properties, managed and participated in the rehab, interviewed and placed tenants under lease, and performed all of the ongoing maintenance and management of the rentals. 

Your reserves should be part of the expense calculation: PITI, maintenance, capex, vacancy, property management, etc.