Reno's come with unforeseen problems, even more unforeseen from an inexperienced eye. 

I have friends that bought a house last year and had to resell it due to unforeseen events, they ended up making a profit despite not doing a thing to it.

There is a risk major unforeseen repair, do you think you this cashflow justifies this risk.

If for some unforeseen reason I don't make the payments - it's on her.

However, I'm sticking with what my stable income can cover monthly in case there's any vacancy or any unforeseen circumstances.

In my opinion, banking on appreciation and not being cash flow positive is a potential recipe for disaster.Break even or costing you monthly and let’s say worst case happens - market slides and you have to sell for some unforeseen reason as you can’t afford to top up payments or whatever could happen.Now you’re left with a detriment to your personal net worth, not an investment.Don’t get me wrong, some people have done well buying purely on speculation, but out here in 08/09 many people lost their shirt on being spec purchasers.Weigh out the risk and reward...make sure you do your research and time the market right...buying at a boom peak before the bust can be devastating.

You might qualify for a partial 121 exemption (still avoid 100% of taxes) if you are selling because of health, work, unforeseen circumstances, and such. 

Ditto with the time and cost (possible evictions) of getting rid of undesirable tenants, not to mention the risk of additional unforeseen damages when unhappy tenants have to move out.Mom and pop owners are notorious for not counting expenses, not the least of which is their own labor and management.

Yes, there will always be something that requires repairs a decade after the refurb, or an unforeseen emergency of some kind, but one bad year here and there doesn't bring down our cumulative average maintenance rate.

Then add a minimum of 10 to 15% to cover unforeseen  repairs that will be found once you start your rehab.