For my personally, I’d first ask what my cushion is for paying a higher mortgage.

I am not a wholesaler, but to me, there is no cushion in there for you. that ARV is right on the money it seems for that area, unless you have a buyer lined up that is willing to pay that price, you may not get it. you would be selling to someone looking to buy a home, not really an investor at market value.

Loose back cushions are a must if you allow pets.

I'd definitely be comfortable with those numbers because the actual expenses are not 50% of gross rents, but because with that built-in cushion....I'd have the unused money set aside for non-planned emergencies, evictions, and other hidden surprises that always come up with being a landlord.

The 70% - repairs rule should leave you with a 10-15% profit if nothing goes wrong, it also provides a cushion for unexpected things that pop up.

When buying real estate, how much of a percentage cushion, if any, do you put in your estimates for property taxes?

the great thing about it is that because of the potential to make your money back in two years you will have enough cushion for any capex repairs that come along later on, wish doesnt sound like much considering the new roof and siding.

I am apprehensive about investing until having a nice cushion to support the risk involved.

Have a good cushion and make sure the renter you have will maintain the property section is a good choice too as they must maintain the property to be part of the program.

HOWEVER, (a) many people would rather preserve their checking account "cushion" instead of having it applied to the mortgage where it cannot be "retrieved" if needed later.