As far a buy and hold goes, down payments are the stopping point.You can only buy (and hold) what you have a down payment for.Some people (when the market is right for it) will flip.Those who know the rules of this game, and are hammer swinger types may have an advantage in this area vs someone who has no sawdust in their blood.If you have no idea of the difference between a Radial Arm Saw and a Chop Saw, or what exactly to use to caulk a wet location, your communication with your sub-contractors might not be very clear all of the time, resulting in inferior (to what you wanted) work, or costly re-dos.In my opinion flipping is more like a job, where you can either live off the money, or use it to buy and hold income producing real estate for your portfolio.Just my 2 cents. 

The cap rates in Dallas proper (where I invest and live) have been hammered lower for the same reasons as the rest of the country.

If I read your post correct your current PM is RPM which is a nationwide franchise which should ensure this process should not go past a handful of back and forth emails to hammer out the exit.  

From there how much money in terms of actual cash you wish to use for the down payment and closing costs.When you negotiate the price of your home, if the seller is unwilling to pay closing costs, hammer down that price and then have them raise the price say 3%-6% to cover your costs, prepaids, that are part of the closing.

As previously stated, they could be minor, or it could be thousands paid out before your contractor gets to pull a permit and swing a hammer

Offer to swing the hammer and help in their rehabs for free. 

If you do sell make sure your listing really hammers in what is included with that fee.:)

The galvanized pipe from the manifold to the sprinkler valves was vibrating the pipe against the stud in my garage.Mine developed into a "water Hammer eventually, but it started out the same way, a new pressure regulator fixed it.Good luck.

Not for you to throw hammers but for learning the business of construction and real estate.

Quote from @David Sledge: What options are available to landlords if the damages caused by a tenant exceed the security deposit?