.: Quote from @Marcus Auerbach: My point was: the law was intended to prevent this practice.

I think it's okay to not have a deluxe backyard, see what the market is demanding.We didn't want to or have the funds to do a full renovation, Here are some things we did when we got our primary ready to rent:-Tore out fiberglass tub and surround in master bedroom-Had new tub and tile surround put in (felt nicer for primary bedroom suite)-New toilets and all new faucets-Hired guy to resurface all kitchen and bathroom countertops-Took down popcorn ceiling and had resurfaced/ painted-Neutral paint and trim throughout (had different colors all over prior)-changed out washer hook-up valves to prevent issues Things I wish we would've taken care of:-regular yard maintenance hired out and baked into rent-LVP flooring throughout (kept mix of tile and carpet)Just did final walkthrough and got keys this morning for tenant moving out.

So your 50k doesn't stretch as far as you think once you start adding everything up.Thank you for this information, it gave me a lot more clarity.I was thinking for my first deal, I could find a property for $125,000 including down payment and use an FHA loan so I only put 3.5% down, I’ll be using less of my $50K capital which will help prevent my $50K from getting drained after down payment, closing costs, etc, let’s say $12,000 total, I’ll have $38,000 left in capital. 

Ask that these expenses be covered under your liability coverage, as the leak was not caused by your renters, but it  did necessitate the moving of items to prevent further damage. 

That impacts me negatively now (compared to 6%), but supposedly was to prevent IRS questioning/audit in the future. 

Any delay or failure in the performance by Landlord hereunder shall be excused if and to the extent caused by the occurrence of any event that is beyond Landlord's control, such as fires/ floods, earthquakes, wars, sabotage, terrorism, vandalism, governmental acts, injunctions, or labor strikes, acts of God and any other occurrences that are unavoidable or unpreventable despite reasonable efforts to prevent, avoid, delay, or mitigate the effects thereof."

Your budget should deal with preventative or regular maintenance and emergency repairs.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

Are you active or do you have a PM who is actively touring your properties to prevent or eliminate premises liability exposure?  

He also wanted a backflow preventer installed in the main sewer line.About $25k so far, but the end is in sight.Just my experience ...Joe