Recapture tax is capped at 25%, so it would actually be LESS than the regular tax bracket for many investors. 

Would each house need its own bank account, security deposit account, and credit card in this setup?

Tearing down hazmat is different than a regular demo job so depending on the county you may have some extra costs on that side as well.Testing, clean up, and certifying costs can get really pricey really quick if you're going to do it the right way - but even after you've got it passed off by the health department, you will still have to disclose the history to renters of buyers. 

Do more regular inspections.

Figure 10% higher tax (cap gains vs ordinary) and SE tax isn't too bad If someone is over the Social Security limit however still sucks paying it. 

My copy would be a lot different speaking to another company compared to speaking to a regular consumer who looking for a service.

FHA requirements for owner-occupancy state "At least one borrower must occupy the property within 60 days of signing the security instrument and intend to continue occupancy for at least one year".Not sure what your exit strategy is, but keep in mind you need to season the title 6 months before you can cash-out refinance into a conventional loan and use the higher ARV.

Directly from Allregs  Fannie Mae's guides:Limits on the Number of Financed PropertiesIf the mortgage loan being delivered to Fannie Mae is secured by the borrower’s principal residence, there are no limitations on the number of other properties that the borrower will have financed.

So I ask her to read me the lease , she says its 1 regular page , rent is $1000 a month utilities included .  

I run ads regularly for my storage units.