Get insurance lined up well before closing so now would be a good time.You need a landlord policy, slightly different (and usually cheaper) than a normal homeowners policy.I have been super happy with USAA for our rentals - if you or your parents served then you can get USAA, they are set up to work with landlords.

I’m very curious, what is normally considered acceptable risk in the real estate community in terms of monthly combined mortgages vs monthly total income?

I can normally build new construction units for 250k to 300k in the Twin Cities.

Hey Mica,There's a load of good thoughts and things to think through in some of the other responses, and I'll add this:- when you are house-hacking it is fairly fluid and normal to be the live-in-PM. 

You can use up to $25k a year of those passive activity losses if you are actively participating in your real estate ventures ("small landlord" exception) and income stays under $100k a year.So yes it can be useful if someone happens to fall under these circumstances, but for anyone who is going to have over $100k a year of retirement / other sourced income, they may be out of luck.It's all timing - you are just using up those PAL earlier than if you waited for the rentals to start producing taxable income (they normally do if it is a good investment), or a property is sold and PAL are released to offset that income. 

., rent , etc)  is this normal???   

Let's assume the property has $313,000 in NOIValued at 6.26 M 5% cap loan $4,695,000P+I annual= $413,400> NOI5.216M 6% cap loan $3,912,000P+I annual= 344,460 > NOI4.47M 7% cap loan $3,352,500P+I annual= $294,708 <NOI cash flow + Are you a gambling man? 

Unless you were upfront that the washer was left by a previous tenant and you normally only provide hookups I think if it is broke you should  fix it. 

We have been in a housing recession (arg, 2022) with regard to inventory and we do require inventory to increase to the mean, to return to a more normal market.

Although, this is normally true, but what else will go up?