You neglect to share where you are located, which will make a BIG difference on how this gets resolved.  

I'm sure the nightmare is the PM themselves doing bookkeeping to save the money.

Sounds like a big can of worms to open to save a little $.

It will save you some stress.

They are stealing older peoples saving.

Use $50k of the $100k cash out for a new personal car and clothing, put the other $50k in a savings account. 

I divide the cost by the remaining years to determine how much money I will need to save.

Even if it looks like I'm making great profit each month on rentals (anywhere from $200-400 after putting away 15% into savings and 8% on management) and yet the ROI is below 8% and our realtor said it needs to always be at least 8%.

I guess how good the deal is matters less when you are looking to house hack because you will be saving the money you'd have spent giving to rent and instead building equity into your property (as well as appreciation and cash flow hopefully). 

@Ari Bildner about the only change I'd suggest is to up your Vacancy to 8% since that'll give you about a month's rent saved up each year (1/12 = 8.33%)