We decided to err on our Risk management side, versus going for MORE. 

People choose A class for various reasons (some erroneously).

I'd err on the side of caution for sure. 

If for example, the current owners built the addition and states that it was permitted and inspected in the disclosure but it wasn't then the SELLER's may be liable for that erroneous disclosure and whatever it cost you.

I made that comment about killing my credit, erroneously based off reading some others that stated it online.

I can't think of anything more low maintenance then 6 people looking at a rental & then hiring an inspector.You watch your home burn down and lose EVERYTHING you own, due to no fault of your own to boot, and you'd err on the side of extreme caution too.

I used $375/mo insurance (based on a quote with $2k deductible from my current provider which could decrease by $64/mo with a $5k deductible) Taxes of $712 (confirmed through assessors office) Maintenance/Repairs of 5% (maybe too conservative, but considering the rehab)Management of 10% (even though I intended, at least initially, to self manage) Vacancy of 8% (The average for the area according to Sterling's is 6.5% but I figured with a C class property it was best to err on the side of caution)I also used $341 for water/sewer which, as it stands now, is paid by the owner not the tenants.

I did not put in any figures for value increase because I prefer to err on the side of being conservative.  

There is a common erroneous belief that if a property is "really improved" it will sell for more than what similar homes have sold for.

It also allows them to contest future reports erroneous information.