This is about the rate of a faucet(w flow restrictor) running 24 hours.

Any other expenses are using up funds that would otherwise be sitting in your checking account to make a mortgage payment with.

Do the numbers make sense with each and all interest rates? 

There are also case by case opportunities within the North Phoenix market where rental rates are stronger. 

Meaning that if you fund a $5K EMD and then decide not to close you lose the EMD, or you pay for an inspection up front and risk missing out on the deal while you're waiting for the report.

The best scenario for the buyer buying subject to is to have enough money and good enough credit to qualify for a new loan at current rates should the due on sale clause be invoked by the lender  

Market insights and understanding the rental rates in the neighborhood.

@Nick Rutkowski no good deed goes unpunished by desperate people:(We try cash-for-keys (CFK) all the time, but tenants always think they're smarter than us.Most are so ignorant, they expect the funds BEFORE they move out.NEVER!

I have some funds in my 401(k), and I'm considering whether I should cash out some of them to help with the purchase.

In the "industry", you would use an "Acquisition/Rehab" loan that allows you to use part of the loan to apply to the purchase of the property and you'll have some loan funds left over to use for the rehab.