Sounds like you have built a great team, especially getting an expeditor, that is HUGE!

Depending on the situation you may find a quad as well that would effectively let you use 75% of the rental income from the 3 units you don't occupy.

I think your reasoning is probably sound.

I've found that typically in those markets, you are buying a property that is likely to appreciate less over time compared to other markets, but are consistent in bringing in cash flow, which sounds like is what you are looking for.

But it does sound like they aren't taking natural wear and tear into account and are possibly going way overboard. 

I would have a rental with 10% interest if it still cash flowed and met my criteria.With that said, you sell what sounds like your personal residence and then where do you go?

Sounds like a horrible plan. 

Do the numbers sound too close?

Yikes - that sounds like a horrible experience.Make sure that you collect any IRS / State notice that you receive with a penalty and forward it to them requesting reimbursement.Best of luck to you !

Several states, and many cities and counties have source of income, ie, sec 8, as a protected class.However the op still should screen his tenants and it sounds like he did not.