Yes, in truth the costs are more than 55% of gross but there is room for improvement that current management is not addressing.

It's hard enough to hold a job and take care of all the things in life but trying to manage a rental long distance with experience is hard enough without adding a lack of experience to it.

I am just not satisfied with working a mundane office job.

They went to another brokerage with a low fee and 1 year later they are still working that JOB and have not closed anything. 100% of zero is zero folks just remember that. 

More importantly with appreciation I'm thinking it would take another 10 years before the neighborhood really started to improve.

your best chances are garnishment if the tenant has a long term job at a reputable company or at a government entity.  

Diy improvements over the next year can put you in a great situation to refinance the equity in order to come up with the 20% down payment for the rental property.

I suggested he fix the exterior and common areas while he's improving the two unrented units.

They worry about what kind of scuzzy messes got spilled on them from the previous tenant, did the carpet cleaner do a "good enough" job?

You have to submit an Operating statement for the past two full years and Year to date, Rent Rolls, Copies of leases, a letter of experience for property management, and a history of capital improvements for the past 3 years.