Any repair issues the new acquisition has you will feel to much greater magnitude due to the property carrying a lot of debt.

The letter also states the total non-rent items currently owed by the tenant, such as accumulated late fees or repair charges.Also very important, the tenant states they have no unresolved issues with their current landlord, except as listed in a space provided, and they have no current plans to cancel their lease under the Service Members Civil Relief Act or for any other reason. 

FHA loans are a great way to get started with a small down payment, but make sure you have some reserves for things like repairs and vacancies.

Additionally, when underwriting deals, you need to account for the general idea that repairs and maintenance will be a larger percentage of your rent, the lower your rental is.  

Focus on distressed properties needing cosmetic upgrades where the after-repair value (ARV) justifies the rehab costs.Good luck!

Mine rented in less than 15 days.)All in all, that gives me $140 a month for vacancy, CapEx, and repairs.

For the property I purchase, I’d like to keep my monthly mortgage payments at $2,000 or less.I prefer a turn-key property since this is my first rental, and I want to start generating monthly cash flow immediately without the delay of repairs or managing two mortgages.

Even with the mortgage paid off, some of the $2000 in rent will go to maintenance, repairs and property taxes.

If the property does not require an extensive rehab and just needs cosmetic repairs then a standard landlord dwelling policy in most cases depending on the carrier.

With $50K and a DSCR loan, your budget will likely cap at properties in the $150K-$170K range, depending on the closing costs and any repairs needed.