Most people including myself are very against it here. 

Get complete info and discuss with a local advisor.And to help credit history, you can report rent to credit reporting agencies.

You can take an "A" neighborhood asset in most locations and fail the 1% rule but these assets will outperform on a cap rate basis a "C" location asset that "passes" the 1% test  if the analysis is not so narrow minded and includes actual expenses, cap ex and vacancy. 

What is included in that $16k?

This is the investing model I use and I have helped dozens of people become home owners through lease options, including single mothers.

No, the vast majority of business's, including service business, start-up's do NOT clear profit day, month, quarter, year 1. 

i guess that's what they say when you run enough reports you will start to KNOW what a good deal is. just watch the FOMO when you do strike gold.

Charge the tenants a higher rent rate and include utilities with their rent.

Or are they included in the rent?

I think zillow has included these in my 1099 they send me..