I guess it doesn't take long for a few major repair bills to eat that up.

Your scenario doesn't answer improvements/capital repairs.Seller financing is usually short term 3-5 years with a balloon note. be prepared for 1 or 2 properties to eat up your cash reserves in a recessionRental occupancy and rates may decline in a recession

I haven't pulled trigger because I had other investments eating up my capital though. 

If they price the loan based on the assumption of a 3% discount, and now circumstances change, the discount rate charged is for the loan 5%, from another loan buyer, either they eat the extra costs, not do the loan, or reprice it.For instance, once I wasn't sure if I was going to live in a rental I was buying, asked the bank whether it's going to be a OO loan or a NOO loan.

I just fear the increase will eat up the money needed to improve the place and tenants life.

I just don't want the contractors to eat up all my equity because I'm a newb.

I just don't want the contractors to eat up all my equity because I'm a newb.

You want to make sure you have a solid plan for what you'll do with the equity though. a 30k spread on a 120k house SOUNDS good, but a 80% cash out eats all that up.

Certainly the toughest aspect of real estate is eating.

Although, it was only recently that I've challenged myself to avoid eating out this month.