More of a safety-net in my eyes, in-case something unexpected happens or plans change before I move to the next property.

The third component that makes a good deal FOR ME is the potential for appreciation, both forced and organic.

I analyze the property, and estimate rehab costs (with inspectors and contractors), add a buffer for unexpected repairs, as well as an ROI comparison of setting the property up as a rental vs. selling the property.If I am ONLY presenting the deal to the investor, meaning I am NOT buying the property myself or setting up any type of assignment, just "connecting" the investor to the property and running the numbers.

I analyze the property, and estimate rehab costs (with inspectors and contractors), add a buffer for unexpected repairs, as well as an ROI comparison of setting the property up as a rental vs. selling the property.If I am ONLY presenting the deal to the investor, meaning I am NOT buying the property myself or setting up any type of assignment, just "connecting" the investor to the property and running the numbers.

Generally, an inspector doesn't show up unannounced, with an appointment, for an inapplicable trade or component of a house. 

Net net end of year, im sure we will be under budget, but I just reallocate those funds towards the “unexpected” appliance replace, HVAC repair, etc.

The two common choices for doing so are the self-directed IRA and the Solo 401k.The Solo 401k requires self-employment activity, but will allow you to take participant loans while the IRA does not.A few other Solo 401k benefits:Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)With either structure, it's generally recommended that you do not commingle retirement and non-retirement assets.

Although there are a few extra components, seller financing to me feels more fulfilling.

All components rotted with worn finish .Unknown foundation status , with uprights set on blocks and wood.

If you plan on holding your properties for the long-term and you have adequate cash reserves to handle any unexpected vacancies that may arise, then you'll make it through a short-term economic downturn just fine.