It would be a tight budget but I do have money set aside for repairs.

Living in one unit and renting out the others allows you to deduct 75% of expenses like mortgage interest, property taxes, insurance, and shared repairs as rental expenses, while the remaining 25% applies to personal use.

@Stefan Ikner, you are correct on the credit repair. 

Landlord will promptly respond to Tenant request for repairs but will not be monetarily responsible for tenant disruptions or inconveniences during habitable times of repairs or tenant/guest injuries incurred in or around obvious areas of maintenance, repairs, or construction.We are more converned about them expecting us to pay for their losses rather than getting recouped for damages to our property. 

I would recommend that you don't ignore it; repair the drywall, monitor it and see if the drywall cracks in the same locations again.

In hot markets, some wholesalers and investors use 80-85% of ARV (minus repairs) instead of the typical 70% to stay competitive.A few tips:1.

Hey all, first time landlord with ~3 months experience here.I brought a tenant in 3 months ago with an insurance company paying the rent (tenant's house is being repaired after a fire).

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

Just recently got hit with a 10K sewer line repair.

However, even in these cases, you typically leave a small amount of money in the deal and only break even before accounting for vacancy, repairs, and other expenses.