You could hire an appraiser on your own and tell him you want to know what the property is worth, not whether or not it will cover the loan.

That may not be feasible on the underlying note if it covers all the homes and wasn't already included in the terms.

For me the 8% is well worth it, they find tenants, screen them, collect rent, call me if maintenance is over $500, I get a detailed report each month and end of year.

There's a one page addendum in my lease that's goes into what renter's insurance covers that landlord  insurance doesn't.

They don't cover nearly as much as you think they do.

I try to use other screening criteria to judge whether someone is reliable and would take care of my place.

My tenants security deposit is around $2600, not even close to covering the cost of repairs.I want to ask how do I handle a security reconciliation process myself?

Naturally I would increase the rent to more than cover the costs and I do believe it could be a great selling point for tenants to consider. 

Your tenant is covering $1500 of ownership cost leaving you to pay $1000 a month. 

In addition, you need to know the current Legal Rents in the records of HCR (DHCR) for each apartment as they will be rents that you will most likely be stuck with and you will not have the ability to increase rents to cover Rehab or your investment.