Below is how I break down the 50% rule to my clients here in Connecticut.The 50% is a short term & long term view of maintenance that needs to be and will need to be done.It is much better to have adequate reserves than to be "chasing" that money for years after a significant unplanned repair needs to be made.Now, if the subject property has ZERO deferred maintenance and I mean ZERO, maybe there is some wiggle room, but I would still stick to the 50% rule.This way when repairs do come up you can take care of them and not leave them neglected because money is tight.Overpaying for a property impacts a lot of things including the ability to be patient when filling vacancies along with being able to address maintenance issues when they arise.Just my $.02.

Second, if your projected cash flow is $230 less unplanned expenses, will this amount you make each month be larger enough than the extra rent you are going to pay for renting out a bigger home to justify this investment?

I would think that having a cash cushion to cover unplanned expenses is a wise choice but really have no idea how much is enough. 

I understand that I need to "buy right" at 50 to 60 cents on the dollar to allow for all the planned an unplanned fixing costs.Thank you @Chris Mason and @Brent Coombs!

What clauses can I suggest to protect myself if I need to exit due to health, change of business, other unplanned event, etc. 

I think there can be too many chances for unplanned expenses even with the best TK property.  

@Danny Day  Reverend @Lucas Carl was kind enough not to mention a tenant overdosing in your vacation property, people cooking meth in your vacation property, people breaking in to your vacant vacation property for a free vacation and a free HDTV, an unplanned fatality in your vacation property, etc. 

You are running a business, which requires capital and resources, and you will face a lot of expenses, errors, unplanned contingencies, and people who will disappoint and let you down.  

If there are not it can cause you a lot of headache or unplanned vacancies.

Yeah good advice and with my price range I will have the money for the unplanned expenses.