That includes the mortgage, the insurance, if there is any electricity the landlord is responsible for, if the landlord is responsible for any of the water and sewer, not all of those bills might be every month, some might be quarterly or twice a year like the insurance, and a small percentage set aside each month for vacancies, maintenance, and eventual capital repairs.

So the purchase of the home included the empty lot.

Not only is the current owner asking for a 300% price increase over what they asked in 2019, but they have included in the new asking price the cost of the garish furnishings they want to sell with the home.  

Your calculation of $40,000 out of $160,000 would apply if the total investment included both the property cost and the materials/supplies, but in this case, it seems the property cost is separate.

This includes electricity, water, gas, and any other necessary utilities.3.

He says he makes $8000 dollars every month- I am thinking he is including his own payroll.If he was passive, he would have to put money to keep the lights on?................

Usually they break down their standards by zip code and need for the area. 

Can we redefine a "Unit" in such a way that it only includes roof and maybe exterior paint (to maintain uniformity) in the CCRs, and use this definition with the NRS 116.3113? 

On the other hand, some disadvantages of investing in Dayton may include economic fluctuations, potential property maintenance issues, and a competitive real estate market.

This could include skipping RLMO, having a balloon payment, and possibly having prepayment penalties.