Given that this deal was unique due to the inheritance, there wasn’t a traditional negotiation process involved.

That's a typical scenario and could cost you $10,000 - $15,000 so that would be a good starting point for your reserve.But there's more!

Are they good tenants?

As another poster mentioned rates are lower than they've been in the previous 18+ months but unless some very surprising economic data comes out between now and when you did your refi it seems unlikely that rates are going up in the short term and there is at least a decent chance that rates drop a little more before then. 

As we say in the sciences, all models are wrong, some are useful.

It is a 2000 sq ft cottage-style home that was used as a residential home.

My dilemma is that my mortgage payment is $3100 and the max rent I've seen in my area is $2800 so I wouldn't be able to rent it out. 

The challenges stem from cautious equity investment and local opposition to these developments, which are believed to attract large families with school-age children.

Here are a few:- Loose stair railings that you decided to fix next year instead of now because money is tight.- The wasp nest that you noticed underneath the front porch and decided to disregard.- A hot tub that isn't wired correctly because you hired the housekeeper's husband to do it for you for 50 bucks.- The shiny new barbeque grill that you had the housekeepers place on the wood deck next to the railings.- That quirky, and warm, light switch that you didn't notice because you haven't been to the property in a year.- The shower that you noticed is awfully hot but failed to check into it more before you left.And so on. 

I have a rental in a new rural development that does not have city garbage pickup.