I think some hosts would account for the cost of purchasing good quality bottled water as well, which is why the Brita water pitcher is popular. 

To replace your income you need to flip a lot of houses, I'd do the math with an average 10-15% profit margin, because you have to account for some turds.The other opportunity is to change your job and take out the element that you hate.

Once that reserve fund is established, move all future cash flow to an investment account.

We have retirement accounts, a small private stock market account, and an emergency fund. 

Ultimately, consulting with a real estate focused accountant is the move here, but this should be a helpful primer.

Per NJ law, must I include account number in the lease?

I believe there can be great value in paid accountability as it really puts on pressure to perform and can provide you with someone to smack you out of paralysis.

I’d recommend building relationships with agents and accountants familiar with these markets too—state-specific tax strategies could make a big difference in your bottom line.I’m excited to see how this plays out for you!

When they move out, I can access their account to charge for cleaning and repairs.

I still think this is just like factoring accounts receivable .