@Raj I. in many regards you get what you pay for but at the same time, $5,500 sounds excessive.

I know loan requirements are strict, but this seems excessive.  

There's no better feeling then eliminating excess debt. 

Any excess funds that aren't used to pay off your debt will be returned to your estate.I looked at it this way.

So my real estate goal is to have at least a dozen SFH of decent quality at early retirement age(55) to carry me to full retirement(62) without having to have excessive early withdrawal penalties.

I have had the bank state in a letter that I had in excess of a certain amount of money on deposit and available for withdrawal.

I've listed below the order I plan to attack things in, let me know if this sequence makes sense:Resolve excess moisture under house (minor grading issue, gutter required, possible plumbing leak)Repair minor roof leaks (repair flashing, seal leaks around chimney, replace tree-damaged shingles)Trim trees away from houseInstall 50 concrete piers and level foundation (foundation had work done previously but shifter due to excess moisture)Install vapor barrierAdd structural roof support beams in attic, add insulationRepair rotten siding/soffit/window frames (mostly upstairs)Repair porch (replace rotten boards, sand & paint)Paint exteriorInstall central AC/Mini-split system (any recommendations on this?)

The more time you get guys will look out for you(at least where I work)I saved as much as I could in 457 plan 401b and excess pension payments.

In my opinion, anything above $250 is excessive. 

If you don't have any other investment you want to embark on with your excess fund that would be generating some sought of income for you on the side, I am sure your best bet is to go for 20% downpayment on your real estate purchase because it helps you build equity really fast and if due diligence is properly followed in the purchase strategy then you can be rest assured of stable and steady cashflow.