For example, something terrible happens on this flip your considering and you are found negligent / liable… An LLC will provide for a cushion and offer some protection and in most cases, it will protect your personal assets (Not Always).

Offer them 10k down, and save the other 10k for repairs and maintenance cushion. 

I knew all along that I wanted to be in real estate, but I was pretty obsessive over building a cash cushion first. 

Today, most homeowners have a large equity cushion and foreclosure rates remain low – hitting an all-time low in 2020 with only 0.16% of homes reaching foreclosure.Buyer Demographics Work from home policies, restricted international travel, and general pandemic policies all encouraged home buyers to look for larger and nicer homes and increased demand for vacation and second homes.

The good part is that you pay down the mortgage quicker (assuming that's your goal) but there might be less cushion in the cash-flow for unexpected expenses along the way.  

Assuming I am conservatively leveraging and keeping my financial house in order with a large cash cushion, I'd LOVE it if there was a bubble.

That’s not being pessimistic, it’s simply that way normal real estate market cycles work.Investing in a smaller secondary market where rental properties are cheaper gives you more of an equity cushion in case prices go down.

There doesn't seem to be much cushion in the deal for unknowns.

Reality is you should have funds to get started and for some cushion.

Limits are a 4-unit building, which will give you the biggest cushion against vacancy and the best likelihood of cash flow.