I want them to realize this is a negative unacceptable experience they don’t want to repeat

Well, we'd be negative cashflowing roughly $500 /mo on the "hope" we'd find a renter for only 6-8 months who would do ZERO damage to the property so we can "hopefully" sell again next year when we "hope" the market is better and "hopefully" don't lose all our equity like we did this year. 

All decent leases should have something to that effect. 

Very low cap-rates (<5%)and NOI, High GRM, nothing gets close to the 1% rule (maybe .5%) and some are running at a cash negative yet they seem to be flying off the market.

I understand when I add in all other expenses this will become a negative number, but since this is my first home and I am living on one side I was curious of your thoughts on whether this would be considered a decent deal.

My question is this, will these new homes being built negatively affect the rental market that rent in this $450-$650 range?

Is there any room to bump them up.Also I would still add 1-2% just to cover some labor even though it will be from one of your other businesses, in effect treating it like blue money.I would also try to offer less.

It is older (1985) and consistently rents with negative cashflow (~$150) per month.  

Does that effect its financial statements?  

Write them down and think of every aspect effected.