Unless something unexpected came up and you want to negotiate, I wouldn't show her the report. 

Sounds like it was due to an unexpected lien that wasn’t discovered until 12 hours prior to closing, therefore they cancelled the closing that was set for Friday. 

There a lot of unexpected things that can happen that could make that cash flow negative quickly.

What happens once material costs (wood, components, etc.) and labor become more readily available is anyone's guess at what point that will happen. 

The only challenge experienced in this project was the seller left behind a lot of her belonging so my buyer had to hire a cleaning crew to move out all the junk, it was an unexpected expense, but was quickly resolved.

The 203K is a standard FHA program that has a construction component.

The houses have been vacant because the tenant was evicted and shortly after the owner died unexpectedly without a will. 

He problem-solved it for me and got the components out on the day of my freeze-up and got a new system in within 24 hours. 

There are closing costs and you want to make sure you have money for the unexpected repairs as well as the expected maintenance.  

But be prepared to have savings on hand for unexpected expenses if you own a rental.