i would say if you were GP on this hypothetical deal, then go ahead and do it. you could do a few more deals after this one and pay off the loan faster. if you are simply a LP, its risky since you have no control on how the deal goes. i did a similar strategy with buying a duplex but i have full control of the asset and how it is run. if you are going to be passive i would try the solo 401K route.   

Innago has more controls over payments.

This is why people are now buying at 3% cap rates...they are seeing the out of control rent growth and they know that the revenue stream is growing--rapidly.

Should I add in monthly pest control and if so, is that based on per sq foot of living space?

When we left last year in Oct we gave her permission to enter the apartment to control heat and replace the heater box in the bathroom.

What you would have is actually free money...if you know how to control the costs. 

What if they suddenly get rent control like Saint Paul Mn where you can only raise rents 3% per year?

We will be adding a throat road into a cul de sac, addressing drainage, and stubbing out utilties to each lot. 

. :-)If you think you have to do it, at least maintain control over the end product so you get a look befitting the place.

There are many factors outside of your control that could affect it.