When there is a vacancy, a leaking sink, a drip from the roof, a fallen branch from a tree, storm damage, a rough tenant, a potato down the toilet...whatever expense comes up in the future, and they always come up, that is what the cash flow is for. 

We are currently looking at a HUD home in Georgia - I have a couple of questions and can’t seem to find a definitive answer - The home is currently in the OO listing period - our plan would be to buy the home doing extensive renovations (the home is in a “Historical” area so renovations have to be approved) once completed we plan on living there full time - it could take ip to a year to complete or longer I don’t know  - as I see it the OO designation is to be the OO for a min of 12 months - is this after the home has been renovated or after you close on the home - though the house could probably technically be lived in now it does have some water and roof damage and needs complete redo of electrical and plumbing - for me to deem it safe - so not really livable by normal standards - but no way it would be livable in just a couple of months - any thoughts or an actual answer to the OO rules 

Some will succeed at having a roof over their head.

"Just a little damage" Walks flat, needs roof and cosmetics. 

Roof, HVAC, water heaters, flooring, etc.

Section 8 demand in Cleveland is through the roof, but unfortunately they don't actually pay that amount. 

This is a typical roof drain.

For instance, if hail damages your roof, you’d receive payment based on the roof’s current value, considering its age.Replacement Cost: Covers the full cost of a new item.

If the entire home is rented out then there can be some incentives to fix things like some big repairs such as roof, windows etc.

As an investment property owner, this means less maintenance and fewer unexpected expenses from storm related damage, often resulting in more affordable insurance premiums, less wear & tear on mechanical equipment, roofing materials or exterior surfaces.