The janitor expense seems interesting as well as I am not sure who charges $33 per month to clean a common area...Here is what I would guess the building really looks like:Gross income minus 10% vacancy factor= $148770NOI using the 50% rule= $74,385True cap rate then would be 11.4.

Charge an application fee if needed to cover your expenses for this.- rental application- promise to pay notice for residents that pay late- notice letters- eviction letters and legal documentation- unit inventory sheets- unit inspection forms10.

They will want to be in equitable position and/or charge a high interest rate due to the risk.

However, they make all the bottom line decisions like who to rent too and how much to charge. 

If you don't know a mortgage/financial professional (they don't charge for consulting), reach out to a handful of investors who have been successful (for more than 12-24 months) and ask them for a referral to their "money guy".  

So why are home owners being charged $350 on average to do what they are already paying for?

They will do everything and charge you a flat fee.

Greater flexibility in lease terms means I can charge a premium.

As you start this new endeavor, I would HIGHLY recommend sitting down with a mortgage/financial professional (there's no charge) and sharing with him your short- AND long-term goals in REI.

Insurance will pay water remediation up to a much higher number than for mold, and does a good job separating the two causes and associated charges.