Yet, when you're talking about a $15k property, or even $40k, 5 grand unplanned is the end of the world, or seems like it at the time.

., $50-100/mo.) that tenant trouble, a large maintenance item, or unplanned capital expense will put you into the red for the year.

But isn't there something nice to know that in 12 years I will have 150K (minus any unplanned costs down the road) in equity compared to my 35K now? 

I want to know how much their fees are from the onset of the process to avoid awkward negotiation or unplanned closing costs.

If a project goes over budget due to say a unplanned event for septic or foundation issue will I get less return?

Well, first you say you want to buy 1 SFH per year--that takes income requirements, and a down payment, and a particular credit profile.Then you will want to have a way (financial ability) to handle unplanned costs and turns, etc...A fixer will take more knowledge than a turnkey rental, but offers additional upside.If you want to do fixers, it seems like a possible manner would be to partner with a successful established re-habber who has a long track record of making money on these deals, and work (on the side vs.

In addition to what you see in this thread, I'd recommend adding a fat safety cushion to your budget for all unplanned expenses. 

If you do your due diligence when buying the property (no major unplanned expenses right off the bat) and run the numbers (account for repairs, vacancy, property manager, PITI, etc.) it should cash flow immediately.

If you have an unplanned AC unit go out there goes half your profit if you are only planning to make 10K.

While I like the strategy of using FHA to easily get into a property, cash on hand for some unplanned events can make you loose your shirt.