You could also fund this with your IRA if you have that.And not to be a pessimist but a 12% cap rate is likely a fantasy # based on no repairs, no management fees, no vacancy or credit loss, no reserve allocation, etc.

Unless it's illegal in your area for contractors to take on work without a license, or local code prevents a GC from pulling permits, the only real disadvantage is that the contractor can't be censored or punished by the licensing body, which usually takes the form of loss of license and fines.

Sell it and take the loss and buy a beater.

For those of us who don't have much extra money lying around to take that monthly loss or who want to accumulate several houses, it is certainly not a good idea.

Discuss the Loss of Rents (aka Business Income) coverage with your agent.  

They will lower minimum payments based on income and stop payments based on loss of employment but they will always be there (now with accumulated interest) to prevent real recovery when someone is back on their feet.

I have:List of banks and financial institutions along with connections and relationships made with severalBusiness planProfit and loss statementProperty documentsRental leaseSOW with itemized list and cost of repairs doneMLS comparable salesI want to be as prepared as possible and show myself as a solid and reliable partner as well as help the appraisal come back strong.

If our great socialist government wants to force me to rent to people I don't like then the government should pay me for my losses.

I have a rental portfolio else where so Acess to a dock for a couple weeks of the year may be worth the paper loss.

In the worst case the economy tanks, you lose your job and have to move out and sell at a loss.