Understanding cash flow and loan terms will help you manage payments.

And then I used maintenance, tenancy based on what I'm reading makes sense for long term, and a little bit of padding. 

@Meghan Carson i'm considering long term rentals and am not opposed to turnkey.

I highly recommend you study this, practice it, and apply it.https://www.biggerpockets.com/blog/rental-property-cash-flow...Property Details:Type: Single-family homePurchase Price: $289,900Down Payment: 20% ($57,980)Loan Amount: $231,920Interest Rate: 6.85%Loan Term: 30 yearsMonthly Mortgage Payment:Using a mortgage calculator, your principal and interest will cost $1,515 per monthRental Income:Average Rent for Single-Family Home: $2,171 per monthOperating Expenses:Property Taxes: $300 per monthInsurance: $100 per monthMaintenance and Repairs: Budgeting 5% of rental income ($109 per month)Vacancy Rate: Assuming 5% vacancy ($109 per month)Property Management Fees: If outsourced, typically 10% of rental income ($217 per month)Total Monthly Expenses:Operating Expenses: $835Mortgage Payment: $1,515Total Expenses: $2,350Net Monthly Cash Flow:Rental Income: $2,171Total Expenses: $2,350Net Cash Flow: -$179 per monthConclusion:In this scenario, the rental income of $2,171 per month does not fully cover the total monthly expenses of $2,350, resulting in a negative cash flow of $179.

I'm considering making an offer on a property that is listed as a 2 bedroom 1.5 bath as a long term buy and hold property to add to my portfolio. 

What if they change the terms on you last minute?

The result is typically less loan proceeds, lower rate, worse terms, etc.

Shorter term CD's actually have higher rates than longer term so staying in the 3-6 month range is best.  

Short-term pains for long-term gains. 

Some focus purely on numbers, while others look at long-term value, location trends, or creative financing strategies.For those of you investing in Chicago (or similar markets), whats your mindset when evaluating off-market opportunities?