How's this co-location plan sound?
 

2 Mid-Tower Servers

1gb private switch

2500GB data transfer

100mb port

10 IPs

APC Remote Reboot

$399 per month

Additional data transfer: $25 per 100GB

And the thing is that I OWN my two servers there. I physically brought them to this facility.

That doesn't sound too unreasonable. Now days, most of the hosting costs is bandwidth. Plus, you have a private switch and those servers are taking up some rack space. You could probably find a better "deal" somewhere, but I'm sure you could do worse. If uptime and support is good, why risk it?

Uptime is good. And the people are pretty nice. The big bonus is that it is about 20 minutes away from my office.

For the specs offered, its a reasonable deal, although I'd want to know where its at before I passed final judgement. The facility itself and its upstream layout are also important factors to consider - redundancy is certainly desirable!

However, being 20 min from your office is a huge benefit, since many people resort to colos in different cities, and are in a world of trouble when their hardware fails.