Within 90 days of purchasing the property I was able to increase rents to $625 ($50 increase) each due to improvements made to the common area, landscaping, and any upgrades we could make while having 100% occupancy.

It's commonly recommended to have six months of PITI for reserves.

At some point in the future if variance is more common, perhaps they will check more frequently, but I don't think that day is today.I think a price reduction is in your near future. 

It used to be common for people to go home to die. 

These are all fairly common fees and common anounts.Have you tried to figure out how much time it would take to manage this yourself? 

One thing to remember with rent by the room is creating specific and direct rules when it comes to the common areas, because this is where the majority of conflict will arise.

@Robert ChaitonThere are two ways for more than one person to own a property.Tenants in common or as an Entity.When setting up the LLC, you want to discuss the following items1) Responsibilities for each member/partner2) Exit opportunity(5 years, 10 years?)

You can then fix this unit and any exterior/common area work.

Curious though, what were the $600 fees for and are they somewhat common?

This applies to any common expense, such as garbage or roof replacement.Another thing to consider is that expenses incurred prior to "in service date" are capitalized.