I had a difficult time myself in the past qualifying for a mortgage to purchase my primary home because of self employment.Dodd Frank is what switched many independent investors from doing traditional in-house seller financing, to doing lease options or other similar RTOs to try to get around some of the regulations.

I would notify them in writing that their security deposit and lease have been transferred to the new owner.

Judging how the rents are $475/month, I'm also guessing this is either a C/D area or a very small town, which may contribute to higher tenant turnover, higher lease-up times, higher possibility of missed payments, evictions, etcRepairs at 5% also seems low, especially if I'm correct about the tenant quality/neighborhood this is in.

I firmly believe that this manager has a personal grudge against us as a result, and we were given a 5 day notice to vacate for violating the "noxious odor" section of the lease. 

Got a situation with a section 8 tenantSection 8 Leases are required to incorrberate HUD-52641-A as an addendum.

I have obtained control of a property by using lease options, owner finance and subject to. 

Should I use Craigslist/domu/apts.com or is using a leasing agent far more beneficial in a situation like this?

As far as expenses, I budget 8.3% for vacancy so that I have a month reserve by the end of the lease, then lower it if the tenant renews for another year.

So, instead of buying, consider controlling property with options and leases.

Alternatively, you can just have a flat "utility" charge on their lease - that's what I do in these situations.Hope this helps!