I would:get a partner to go 50/50 with me or put a down payment to cover rehab and have some reserves for unforeseen circumstances and once rehabbed, then refinance.

I have budgeted in an additional $100/mo ($1200/yr) for any unforeseen maintenance.

They're not delaying because of potential, unforeseen furloughs.

Rehabs are not unforeseen really, larger rehabs do need a cushion if you're tearing out walls, replacing cabinets and tops as little things happen.While I may sound conservative, I'd have to say I'm not really, with more knowledge comes the ability to accept more risk, if you really get in a pinch, you should have an exit strategy, like selling it!

UNLESSYou qualify for one of the IRS exemptions (the move from the home was related to a change in employment, health, rare unforeseen circumstances)If you qualified for an exemption- it would just be a prorated amount of gain exclusion 6 months would be a 25% exclusion 12 months would be a 50% exclusion

Here are some of my random thoughts on this.You want subs who's work is constantly done in a “workmanlike manner”, who will show up when scheduled and finish on time and on budget.When you are running a job, it's important that Trade A complete his work (ie Electrician) before Trade B (Drywall crew) arrives a week later, because if that doesn't happen you lose control of time, and time is money (Unforeseen construction delays and cost over runs can throw a project into bankruptcy).This requires good subs, and if they don't pull the load with this, replace them quickly.Learn how lien releases work in your locality (it's different all over), get lien releases when you give a check...no lien releases, no check.

I have done the same as @Rob is saying where I gave tenants an option to walk out if they cant make the payment given they were good before and have lost job or unforeseen reason.Sometimes its better to work out than go through eviction and the property is still under the tenants control and they can do undo damage which can cost more to make it ready to market and lost rent.I dont do this for all tenants some tenants ask for eviction and dont want them to walk out easily and cause the same to other landlords.

Everyone has their own way of doing things and sometimes that can cause unforeseen issues.Just keep learning and push forward.

Not saying its a bad deal at all, just make sure you think long term and have the ability to survive anything unforeseen happening with your largest tenant. 

Anything "unforeseen" on top of that would have quickly destroyed my 10% repairs and cash flow for the year.