Or does this include insurance and taxes for the year.

I'm pulling preliminary title work.

Meanwhile are the taxes and insurance even being maintained on these defaulted properties.

Make sure you take into account all of the perks that come with a job; Paychecks, benefits, health insurance, access to printers, office supplies, etc. 

@Rita Koroll,To the question posed in this thread's title, people make landlording a LOT hard than it needs to be.People who place no value on their time try to manage their own properties.

@Julie Belton, the cap ex, repairs and insurance expenses seem too low to me.

I still don't know what to call the alternative, the one where title is transferred.

Right after you close get an insurance policy that protects you if there is a loss. 

You can charge the person that is buying the option agreement th 3-5% option consideration fee, but the legal fees and other costs that are there to insure your protection, is out of your pocket, since it is your option to use those services.

In Colorado whenever I look at triplexes the insurance is double of a duplex.