Then when the tenants moves out, you can assess if there's any damages or cleaning.

A reserve is unnecessary, but I still keep around $15,000 - $20,000 in my account.The point is, that you should sit down and assess your finances to determine what the worst-case scenario may look like, how much you would need to cover it without impacting your life, and whether you will need to build a reserve.

Early repayment will mean a 2% fee being assessed. 

You have to be honest with yourself, understand the risks and assess if you can afford the negative cash flow.

@Brian Larson - Are you asking how to assess rental demand in any given market? 

Learn how to properly assess and QC the excavation and foundation phase, framing, roofing, siding, windows, etc.

As @Robin Smith mentioned, for assessing demand I used FurnishedFinder.com/stats; you can see demand data for a given city and some pricing data too.

Here is a CSS Decision Diagram flowchart intended to bring together all the various questions when assessing the benefits of a Cost Segregation Study (via a professional or DIY).FYI - You can do a CSS for ~$400, ask @Malik Javed how.

Thanks for the assessment from Colorado Springs! 

Keep learning and assessing your financial position as you grow.Good luck!