Questions:-Is this a fair and simple structure - Do these plans usually balloon after a given term (ie 5 years)- Are we within reason to charge an acquisition fee and ongoing asset mgmt fee?

I own a duplex in Minneapolis, MN and would like to charge the city utilities back to the tenants.

They're a little pricier than traditional conventional rates, but with good credit they are in the high 6's, low 7's on a 30 year fixed. 

She charged cost plus which I’m normally very skeptical off; cost plus contracts are the most heavily abused contracts.

They say you can use conventional financing too, they install a tenant and manage the property.

Your WC policy is auditable and if the subcontractor does not have WC himself, you may end up being charged for him anyway.  

What scares me is how large a mortgage or money borrowed is as compared to the rent you charge for a property.

Although I dont have properties in your target area, I'm a developer and have experience with short term rentals so feel free to reach out.One think I would recommend is to check your competitors and see how much they are charging and what types of experiences they are offering to the guests.

Third, if I found out that you were trying to charge me more rent than another tenant, I'd sue you.

Conventional methods haven't worked and so I brought in a professional.