Also factor in a reserve for the unforeseen expenses that always arise.

I am on the opposite side of @Collin H. when talking about a bubble, to me it's just the beginning of a spike in inflation that based on interest rates and money added to circulation can't slow down until the FED winds back on not only interest rates but QE and they aren't likely to try both at once so we are looking at another 3-5 years of craziness in housing and stocks, but who knows maybe there is some other unforeseen circumstance that Government can try and stimulus it's way out of.

Explain that that grace period is for unforeseen circumstances.

It's been sitting for 6+ months and had multiple offers rescinded likely due to unforeseen issues with the inspection or tenant issues or no lenders would provide financing.

If something unforeseen was to happen such as the rental home being vacant for a few months between tenants, and any expenses you might incur to fix the place between tenants, you could be looking at having to come up at least a few thousand dollars of your own.

We held this property as an Airbnb for 3 months before we had to close it up due to unforeseen circumstances.

We held this property as an Airbnb for 3 months before we had to close it up due to unforeseen circumstances.

There are other unforeseen things that can pop up as well.I am not saying that REI is risk free but, as an owner, I can pivot to LTR or sell if I need to.

As most investors know, there will likely be a surprise along the way, costing an extra $5k+-, so this way, you have some flexibility in the value to cover for unforeseen items. 

Attempting to save more money by doing everything myself resulted in more unforeseen opportunity cost and the stress took a toll in ways I couldn't imagine.