Don't forget to give yourself a buffer in case unexpected expenses come up. 

., and it is in great shape, it just needs a lot of cosmetic work.Further, the contractor I used is a bit on the expensive side, so I do have a little buffer there.

The trade only involves 30' which would remove the remaining easement while freeing up the other 30', plus extending his yard to the rear to create a visual buffer.  

Find out how much do you need to get started and work for that minimum plus a 10-20% buffer.

Adding that 40k to our bank account for a buffer and repairs to the home we purchase in Florida, versus waiting for the sale and taking cash and purchasing with cash leaving us with no cash.

I agree with that your analysis must be very precise on the numbers and build in a buffer, meaning what could be the worst that could happen.  

I bring in about $4-5k more than I spend each  each month, so that is the first buffer.

Laura Thorne That is a correct assumption, most likely the contractor will submit the bid according to your budget, but be sure to buffer a bit, say if you think the rehab is 50k, then tell the contractor that it is 40k.

The other key is getting in so you can stay in ... if you are very wealthy like Bob you can pay retail and still be sure you can afford to hold through a downturn, but for most others it means working to buy below market and forced appreciation to achieve an extra equity buffer and hold from a position of financial strength.

Some folks just work better with a PM buffer.