Here's some copy & paste advice we hope you find useful:----------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

We don’t really need the $400/mo cash flow and so have been saving that just in case the house needs a major repair.

We will be doing paint and floors as well as a few very minor repairs

To determine rehab costs, calculate the After Repair Value (ARV), total rehab costs, purchase price, and other expenses.

The condo includes high-quality granite countertops, custom cabinetry and wood floors.

Sure it works to get your money out, but when you when try to rent the property out, you are sitting with vacancies, low quality applications, and if you try to sell you can't nearly get what the home appraised for. 

You can see big differences between similar houses based on location, even within the same city, and quality or the property. 

Nashville is a very pocketed city when it comes to neighborhood quality especially in relation to crime rates, overall aesthetics or available amenities.

The short version: looks like it will cash flow on paper but in reality with repairs and potential tenant issues it won't, very affordable purchase prices (Indianapolis range is $120,000 to low $200,000 depending on the Class C area or distressed properties under $100,000, many times older homes with sewer line and foundation issues, stolen AC units (get a cage for the unit), Class C is volatile.

If your local law allows it, see what everyone else is doing and go by the norm. 3 months rent is a substantial amount for some, but really helps ensure the financial quality of a tenant.Sometimes I have immigrants who apply who work their tails off and can't afford the 3 months up front.