I’m always conservative with my rent projections when I’m turning a building or doing a vacant deal. 

As an accountant, I’m pretty conservative and accurate with my figures.

The rent range is pretty wide for that property however and your estimate is on the higher side it looks like, so maybe just get a little more conservative there to be safe, but even at $1300/month rent it still cash flows decent.  

This data also shows that I am conservative in my ARV.

I guess i raised the question due to the fact that I would have enough reserves to cover any unexpected expenses but with the possible purchase of my second property, I will play it a bit more conservative and have the tenant pay down my mortgage.

And @Andrew Beauchemin, your advice to build in some conservative numbers for volatility is sound.

You said you will self-manage but you should still plan conservatively and hold out 10% ish for PM.3.

However, if you kept good records and depreciation was taken appropriately, and you actually resided in each half of the property for 2 out of the 5 years prior to sale you should be able to take it all in the one sale with the exclusion.You would always have the option of 1031ing half and since your already contemplating a purchase it would be the conservative approach

I wouldn't assume that people would be willing to pay $700 for a room with shared bathroom/kitchen when they could rent a full apartment at a similar price.I would be on the lookout for more of a deal to ensure monthly rent is more than 1% of the total purchase+rehab cost and be more conservative in my rental income estimate. 

Am I being way too conservative in my assumptions?