There are also things like closing costs, points paid upfront, prepaid insurance, prepaid interest etc. 

Just realize that the prepaid/escrows shouldn't be there twice (unless you escrow isn't rolled over). 

This included Loan cost, taxes and other government fees, prepaids, initial escrow payment at closing.

That being said, you must have the intent to occupy the home for at least a year.If you don't have the intent to occupy the home and you're going to buy the new home as a rental property from day one, you'll need a minimum 15% down for an investment property purchase, which would cap you at a $100K purchase price (not accounting for closing costs & pre-paid expenses).  

I also have a pre-paid legal plan that will cover a base amount of legal services if I am sued.

Your going to need some of that 8k for 1 st year hazard insurance and in my county first 8 months of taxes prepaid.

There was a limit to the amount the loan could be increased to cover closing costs and prepaids.

Fees to close escrow on a home include costs such as origination charges, appraisal fee, home inspection, title search and lender insurance, prepaids (such as homeowner’s insurance and prepaid interest), and title insurance.After taking title and moving in, the part of the property being rented out will need to be made ready for a tenant.

Fannie Mae guidelines state: "The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."

In reading the Fannie Mae guidelines, here's what it says:"The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."