I estimate repairs at $20/SQ FT totaling $34,000 plus $15,000 mold remediation, $7,000 for a new roof and a little buffer of $10,000 for overages and unknowns.

Would the $10k end up in savings just to give you a buffer and give you comfort?

In terms of strictly capital you should plan the purchase with enough buffer should anything happen.

.)#5 Inquiries 10% - of score is based on the inquiries within last 12 months •Mortgage and Auto inquiries have a 30-day buffer (not counted against)•Rolling 2 week grouping used for prior months up to 12 months total.

@Chris GallickIf your really worrIed you could always Take the money that you would give the special landlord insurance company and put it in a savings account each month and then of coarse you also have the tenants security deposit .. if something happens your covered or atleast have a nice padded buffer for evictions ,damage , etc without a big hit and if you don’t need it you still have your little fund for other expenses / updates

That is why I have started to care less about the cash flow numbers and instead look at whatever positive cash flow I come up with in my calculations as "buffer" while my hope is to rely more on mortgage pay down and hopefully (and I know some people will cringe - sorry) rent appreciation over time.That change in thinking makes a lot of the properties quite a bit more attractive, although it is admittedly a less conservative approach.Just keep on looking, you never know when the a good opportunity is going to appear in front of you so you always have be looking ahead and be ready to move when you see an opening.

During market up tick cycles, your buffer ends up being the appreciation while you hold it.

We got in with plenty of equity to buffer against the falling market and at a price that allowed him to cashflow quite well.

This way, you have a buffer built into the HELOC if/when rates rise.  

I would highly recommend setting aside some buffer in case something goes wrong, which more than likely it will.Sharad