That is intense!

Ignoring market cycles and simply using your available funds for the decision , if you have ample time and the background to handle a more management intensive Class C property then do that (assuming you are self managing).

You should adjust your property taxes accordingly.

A claims adjuster said , from their inspection of the home, that some of the attic insulation is of mineral fiber and likely asbestos.

I don't know how many times we provide real comps to the appraisers to help them adjust their number to fall in line with reality, but I'm pretty sure it is every other day. 

It’s been hard adjusting the past 7 years but I’m ready to get my feet wet in the real estate market here.

But, as you point out, it eventually will be in that 5th year, if your prediction holds true.So, if I were confident that $15K is the correct repair cost, and also that 5 years was the likely time-frame, then I would wisely set aside that $3K each year as an actual expense that would come out of income and go into a separate CAPEX account for accounting purposes.I would then adjust my NOI number accordingly and recalculate CoC.

In analyzing, I would often calculate a 10% vacancy into my expenses (shout out to Michael Blank), estimate repairs, adjust rents, and usually wind up with very little in return in regards to cash flow and ROI.

I'll definitely look into the town meeting minutes on rentals before I make any moves and adjust my strategy accordingly. 

It also depends on there goals and they can adjust to make it fit there goals.