It's a balance of cashflow and wealth accumulation.One of the goals is to have tenants pay as much of your cost-of-ownership as possible (loans, taxes, insurance, etc.)In high-cost areas, any Class A or B property you buy will usually negative cashflow for the first 3-5 years, until rents rise enough to cover the negative cashflow + rising taxes & insurance.Investing OOS increases your risks because you may not know the market and you can't check on everything/everyone all the time.If you move forward with your buddies, HIGHLY recommend creating a solid Partnership Agreement!

I handle hundreds of insurance claims, resident compensation, crime, and pricing… so I am very familiar with the system and reasons behind policies. 

You have the mortgage, taxes, insurance, maintenance, capital expenditures (roof, flooring, etc.), and also need to consider the cost of vacancies or bad tenants.I also recommend you charge market rate, for yourself and the tenant.

Would title company insure the property with the easement?

The most likely options are exchanging:Life insurance for life insuranceLife insurance for endowmentLife insurance for non-qualified annuityPersonally, I would first determine what type of exchange you want to do. 

Feel free to use this template:RE: RenewalDear Tenant:With the increased cost of taxes, insurance, maintenance, and other incidentals we are required to increase your monthly rent.

IE securing them paying tax's insurance etc etc. 

  $31k after tax annual income - $11k rent = $20k or $1,600 per month net income left to cover all other expenses (utilities, cars, insurance, groceries, kids, activities, etc.).Median household income for 38128 is $41k or $36k after tax

Companies are having to set aside a certain percentage to cover the Cap Rate insurance and as an abundance of caution with these interest rates- class B are paused.

Some people will say, "Take out a quality Insurance Policy and you will be protected."