After getting burned a couple times by professional, experienced renters who quickly recognized our management inexperience, we began to pivot to increasing our knowledge of subsidy programs, mainly Section 8, which had inherent resident accountability measures modeled into their programs.

My methods are probably more stringent than the majority of landlords as I screen without any considerations for protected classes or any other "problem tenants".

Is this just a cost-savings measure related to that $13M in dues that they mention in the letter, or are you convinced that the real reason is what they say it is?

CoCR is ONLY a measurement for the first year, but let's say that return was a consistent yearly return. 

You can take measurements and pictures of your kitchen into a home improvement store like Menards or Home Depot and they can help with kitchen layout ideas.

Realtor, PM, Handyman, DIY's - Regardless of who is supposed to be answering the phone, 76% of the calls aren't being answered (we've measured across the country at all rental levels).  

And then you compare that yield to other investments (which are typically measured on the annual cash thrown off versus the investment).

Both principals of the property management company have told me over the phone, and on separate occasions, that their tenant qualification criteria and screening process was far too "soft", and their plans going forward (2014) were to make them much more stringent.

I like your first option with one added measure.  

I agree with @Chris Clothier Every property will have negative cash flow at some point as the amortization period of the debt is reduced.Cash flow is only one measure of investment performance.