Throw in extra repairs for a 100yo bldg and you're at 50% no problem.If they are doing a good job placing tenants and maintaining the property overall, I'd be hesitant to fire them.  

Better luck and better prospect with Marriott and Hilton brands, to get some good management companies - ultimately costing you 20% or more of the gross - when you add their extra-expenses of over staffing and unwanted maintenance and repairs bills, and, using their unused-resources to bill "your property" for services etc.

House 1 you say is move in read, so if you plan to offer $42K, where does the extra $5-10K invested come from to get $47-52K?

Then if they are rented out, that extra bath and garage may not matter."

I put extra each month on the highest interest student loan, but save most cash for the rentals.

@Travis Washington I dont know the rental comps there but if you do choose to add the fence, you can target different markets such as pet owners who would be willing to pay extra for the fence for their dogs plus you can charge a pet fee.

If so, why should you get the extra hourly PLUS a larger percentage of the profits? 

@Maneesh Joshi maybe its different here in KY, but i've never had to turn in a lease agreement for any of the rental properties I insure for my customers. if you are rehabbing the property, you should have 6 months to get that done, but will have to put the vacancy endorsement on the policy. then remove the extra endorsement once its rented out. maybe try a different agent...

At the end of the day and extra 2% in interest (if that) isn't usually a deal breaker on an income producing commercial property.Hope this clears some stuff up for you.

@Ryan H I don’t usually supply fridges in my rentals, because it’s an extra appliance to maintain.