There are always unforeseen factors.

That money could be used for rehabbing, contracting, unforeseen costsI'm obviously still heavy in the dreaming phase.

I think I can get it for $20,000 to $27,000 (either # appears to still make for a good ARV)I plan on putting in at least $30,000 (I have more I can allocate if I run into unforeseen problems) into the property ( both purchase and rehab will be with cash no financing)I believe that after what I envision for the property, after rehab ( possibly adding another bath) and comps, it can bring conservatively $75,000, I think more but think I will stay conservative.I personally feel that the numbers make sense to pull the trigger and generally feel RE is a good investment no matter what.  

Hello BiggerPockets forums.As a bit of background, I'm in Memphis, TN, and while I have well over a decade's experience in investing, I have never done any real estate investments other than some REITs.I have about $12k to invest and excellent credit, and am looking into investing in rental properties.My thoughts are that I should start with multi-family units with existing tenants, as I'd ideally like to keep some of that money left over in case of unforeseen expenses, and I really don't want to dip into my backup funds unless I have little other choice.My questions are 1: Is this a workable strategy?

Hold properties that produce passive income can offset unforeseen expenses, holding costs and losses as opposed to you having to work harder at a job or selling your retirement assets in order to compensate.With a great credit score and $20,000 down, have you run the numbers on investment properties in your area that could provide passive income first?

The numbers fitted our spreadsheet Almost zero unforeseen Red FlagsTotal time was twice than expected.

But to me, it sounds like your distaste for leverage assumes that people are not buying smart with significant reserves in case of unforeseen circumstances.

And so I tried not to give a reason- I notified them and said- due to unforeseen circumstances- but the tenant wanted to know- I ended up making up a reason that had nothing to do with  the lawn.

All it will take is something like another decrease in our credit rating or some unforeseen panic and we will not be able to sell government bonds at the rate we want.

Those are unforeseen problems as you cannot inspect the whole house or interior prior to purchase.