It would be much simpler to determine a monthly average cost, bump it 15% to cover excess use, and include that charge as part of rent. 

However, do note that excessive credit pulls can negatively affect your credit score and rate can change.Let me know if you have any other questions regarding financing.

It boils down to what your appetite is as well as what your goals are. 

It would be better if that earned equity is supported by an excess cash flow (better property selection) or not subject to market/liquidity risks (such as if one successfully sells the property).

There are also, non-standard or excess/surplus lines options (like lloyds of london) that may also be able to write the coverage

If you are willing to pay more for a property than what the comps say, all you need to do is cover the excess.

Good luck--disgruntled and probably (like you said) underpaid housekeeping, incompetent and excessive mid level management and high turnover with switch board staff created a nightmarish situation for us---hopefully your experience is better.

Section 8 also requires certain repairs that sometimes seem excessive or unnecessary (i.e., an exposed ceiling in the laundry/utility room requires a drop ceiling - a city inspector would typically not require this but the housing authority will). 

I am seeing several big name lenders get sued for excessive rates, devaluing properties and putting borrowers in a worse position.

And as in the case of investing in SFRs - where you paying premium/retail dollar at buy - being equity limited partners you are paying fees and giving up portion of excess return to the active investors/general partners putting together the syndications and overseeing the implementation of the day-to-day.