If the property is brand new you might get away with the first 5 years with minimal repairs but if it's older I'd plan for 30% to go towards repairs or unexpected expenses. 

Any unexpected expenses?

Escape clause is as easy as finding something unexpected that pushes the rehab budget too far.

Lastly, by a lot of work, I mean it needs completely rewired with lots of outlets added to come up to code.

That 15% of loan amount in reserves covers times with no tenants, repairs that may need to be made during tenant turnover, and other unexpected or expected expenses.

You may need a 5th electric meter and a 100 amp “house” panel installed to supply electric for new sump and any electric in common areas, exterior outlets, food lights, etc.This is what I need to do for a multi family building in the suburbs of Philadelphia.

@Ryan Moore,Ok, those reserve are not required to sit in your LLc account without earning anything.The whole reason we have reserve is to cover unexpected expense.

A good one, with a list of your repair demands, can probably write a demand letter on your behalf for a couple of hundred bucks, which is cheaper than moving unexpectedly. 

Staying diligent and proactive before they stop paying rent, cause property damage, or move out unexpectedly is really important. 

Yes, they may lose out to someone who waives inspection, but far better to lose any one deal than to drop the inspection and and lose their shirt because they get ambushed by big, unexpected repair items.I never suggest "loading up" on contingencies.