I'm considering making this property into more of a mid term rental as an interim spot for people that may have experienced a flood, fire or are moving or renovating and need an interim space. 

Where I’m at, if you list on Zillow, and you are priced right, you should be flooded with applicants for an affordable property… but the ‘flood’ decreases as your price point moves up.  

She claimed "air quality" and "water quality" problems among her chief concerns.

It includes high-efficiency HVAC systems, contemporary LED light fixtures and multiple tankless water heaters.

It’s also water-resistant, making it great for any spills or moisture issues.

I can tell you these facts:SFH lots of times do not qualify for max cash out options b/c the rent can'y support the max loan payment.2 - 4 unit houses always have a 1.5+ DSCR and never have a problem affording the max cashout...STR rental structures blow LTR rental structures out of the water. 

for example when changing cabinets, addressing trim, door pulls. hot water tank replacement: place a pan under it.  

things missing in your list (everyone manages differently, so take it with a grain of salt)Vacancy rateTurn overbad debt legal fees (evictions as needed)accounting fees for professional tax prepmaintenanceProperty TaxesSales Tax on PM fees (In NM, this is charged, not sure about where you are)Reserves for replacement CAPEX - furnace, water heaters, ac, roof, parking lot, etc.Admin, software, advertising, etc.Cost segregation study for accelerated depreciation captureAs for your loan. 

Utility Costs (Water, Gas, Electricity):- Paid monthly by the tenant unless included in rent.

Only 2.14% CoC return though 😞My all in is about $4,100 which includes $180 required flood insurance.