If any of it is utilities or something that in any way could be amounts owed to a landlord, that is a red flag.How long has she lived at her current place?  

HUD also has an extension of the 30 day closing period. $375 last I checked.

Does anyone have experience with these, if so I'd love to hear more about them as I would utilize this type of collection system for my rents once I get in the game. 

Buying or paying retail for real estate does not make for profitable situations unless the building you are buying has utility for your purpose.I disagree with the waiting for appreciation! 

I amy be a bit biased, but after working with investors form all over the globe, the one thing I have learned is that the venture is largely hinged on the front end of the transaction that  utilizing a reliable higher local provider with sophisticated operations and systems not just plans of how they will help you acquire, repair and pas you along to a magnet company.

However I would prefer to utilize some leverage.  

Let's say company net assets in bank is $40,000.00 creating a system quarterly that will utilize 20% of that towards marketing.So January, February, March - $8,000.00 total between Direct Mail campaigns and other forms of marketing.  

If you turn your building into 2 condo's, then the comps you mention might be able to be utilized.  

Your numbers are off - capex really depends on current property but people like to carry 10% of rent ($130), repairs are another 10% ($130), vacancy again depends on area but if you assume 8% ($104)Big question is who pays utilities.

It's all about those utility bills people!