I would want some major security deposit on file - maybe 6 months rent (personally), and / or possibly have them carry an insurance policy with you as the named insured for a descent value for any damages, etc - with the policy specifically written for the type of business they are actually running.

That is why you see impulse purchase items at the cash register or where the old catch phrase "do you want fries with that?"

There are items in every home which will require constant maintenance, meaning yearly or every other year such as the furnace-A/C, toilets, faucets, main drains, and gutters. 

I would want to have enough cash to handle both a hiccup in the credit markets and carry the negative cash flow.

I am more concerned about roof damage since that is usually the biggest ticket item. 

We had to request correction of multiple other items that we did not feel were finished with sufficient attention to detail.

I have a reasonable number here that gets carried to Schedule D line 19.

There are some very lucrative properties though that will need to carry flood insurance.

I cleared $10k on my first one.We ended up clearing $30k on the second one.The last flip was very stressful for my wife and she wants to keep our finances (HELOC) out of the next one.I am going to look to find a financing partner to cover the carrying costs of the next flip.On a $400k house (average for my area), the total investment would be $85-$95k and would be paid directly to the lender and subs/suppliers, not to me.I can bring the lender, as I have a good rep with the one I use.I will do all the rest.

*Two-wire ungrounded systems with two-prong receptacle acceptable *Two-wire ungrounded system with three-prong receptacle unacceptable unless supplied through GFCIBased on that, the 3-prong outlets you put in wouldn't pass if they test them.If you're interested, here's a list of the top 10 most commonly failed inspection items (in order from highest to lowest failure rate) from one county Housing Authority:1.