You'll have better quality assets, and  more reserves.

If you don't have reserves where does the rehab money come from?

Sheri look and see what the city is planning and see what going on with homeland security a few more big names just said they are coming over there and look at the Good hope area where the city is putting  millions on grants to redo the store in the area on the mayors page so do a double take on that one.

With that in mind I’m projecting 200-250k to fund a 25% down payment, closing costs, light rehab, and 6 months of debt service and opex as reserves.

I just got off a call yesterday with a investor group with a bunch of blue island buildings,  from there experience tenants have been pretty good but the buildings are older and a lot of unexpected problems have arisen so I would say make sure to have a good inspector and some reserves incase work is needed and its a good area to cash flow.

Use the "extra" income to build a reserve for maintenance, vacancies, and other expenses that don't happen regularly.

Can you afford the downpayment, brrr costs, keep money in the deal and have sufficient reserves for both properties(i.e 2 years of vacancy/lead times, 75-100% of capex, 3-6 months of random ********?

Make sure to have thorough inspections done and factor in extra reserves just in case.

I will have enough reserves to cover the holding costs as well as some left over as emergency funds for the property.

You may need to click the images to enlarge them.Summary of the Year 1 cash flow: The details: $82k purchase price, 25% down payment, 25% reserve for maintenance, vacancy, and management.