and are you certain that the appraisal is based on AS IS value and not subject to value (ie value after repairs)? 

So, he's claiming the home warranty won't cover... fine, what's the repair cost?  

One is the $10,000 repair expenses.

Quote from @Tomoko Hale: Quote from @Bruce Woodruff: My thoughts: If you are going to use a PM, hire out the cleaning and any maintenance/repairs, you will be giving away 30+% of your income.So you need numbers to put on your spreadsheet.....1) what are you estimating for your nightly/monthly imcome?

They'd be much better off being a Hard Money Lender and make 5 times that (and every repair to their "investment house" is paid by them...So, if you put $10k down on a property and make $150/month net cash flow your Coc Return (annualized) is 18% which is Very Good.If you followed that and understand it then keep looking for a deal.

Assume break even cash flow while rented which includes a generous $600/mo repair fund. 

I'd be able to put 20% down on each and have money left over for some repairs/updates.It seems like I'd initially take on more stress, less initial return but the long term scalability seems great.  

it does allow you to repair things outside of the home to a limit. 

Since the price of a multi unit is double or sometimes 3x the price of a single family home, would it be smart to start off with a SFH and scale up from there or just make the leap into a duplex that I can force some appreciation with minor repairs.

What is your draw fee & benchmarks for the repairs portion of the borrowed money?