@Stephen Johnson - A couple things... after repair value - where does that align with the area? Could you sell the property for $160k or more? Also, what repairs are you doing (rhetorical question)? $200/month ($2,400/yr) cash flow does not leave much if something breaks in the house (HVAC, Roof, plumbing etc.) in the immediate future. If all major components in the property are new (or recently replaced/upgraded) and you don't have to worry about them for a few years, then not as big of a deal and you can building up the rainy day fund.