While they more than fit my main two criteria for tenants, namely pay the rent on time and no concerns about damaging the property, they are becoming increasingly demanding about improvements to the house and yard. 

If am to increase liability and vandalism the added cost is $130 + the basic insurance $908.

Plus 50% of any increase in the price, if there is any.Most HML look at 12% with less risk (70-75% LTV vs. your 100%).

after 2 consecutive years of 0% rent increases on 1 year leases and now only a very minimal increase they are proposing a bill that, (ready for this one??!!!)

We are also going to move a few non-structural walls around to increase the kitchen size, convert the hall half bath to a full bath, and turn the current full bath into an en-suite for the master.Exterior we are replacing the siding, windows and doors, and paint the brick white.

Very simple, important lesson there about the importance of cash flow.

The great thing about buying SFR for a cash flow rental property for the long term is even if values drop in the short term because of a down economy rent prices increase because no one wants to purchase housing when home values are falling.You just need to be a little careful in the area that you are trying to invest.

When you purchase with an FHA loan and a 3.5% down payment you will need to pay PMI until your equity increases another 16.5%.  

What are you seeing in Pueblo, values increasing?

This would increase the overall raise amount, address our challenges of raising capital per project and the returns would be shares of all the projects.