For example, you can hold $7000 in an emergency fund, that would cover most major things.

I would sell the condo and work on increasing your emergency fund since your wife is not able to work now.

I would essentially be renting it at cost, with an extremely small to non existent profit margin especially since whatever money I would make after mortgage and HOA was paid, would have to be rolled into an emergency fund for the condo in case and when something will inevitably need to be fixed.

In the mean time we have cleared all CC debt to have as emergency funds if needed in addition to our cash emergency funds of 6mo of bills and living costs (basics).

Make sure you have a solid emergency fund and have done your research about rental rates before making your rental home purchase.

You should have some type of reserve in your bank accounts used for operation and the maintenance/repair funds should come from there if they exceed that month's rent.I have these so-called "emergency funds" or "reserves" for each of my 35 units.

How much extra/emergency money will the bank want me to have available to carry these two mortgages?

Also if you buying an older home unless absolutely sure you have a new waste line.first thing out of the block is a sewer scope.. much better to deal with that before tenants move in.sewer may work when inspector flushs toiled once or twice and runs the water for a minute but when house is put into full service and you get a back up.. you now have an emergency plumbing issue that will be 2 to 3X as expensive if you just put a new one in while under rehab.. plus it will last the life of the investment.. the number one issue with rentals is plumbing.. so take care of if prophilacticaly

Even if you happened to be the spawn of Bob Villa, that 4K should be saved for emergencies and not rehab...period.   

You can find several products that can be attached to a window which creates a second egress (think emergency rope ladder) these are cost effective and can be stored in a case as to not be messed with.