The key is to make sure you have enough monthly cash flow to cover future monthly expenses (you must take into account vacancies, and make ready after a tenant moves out, and capital expenditures such as roof and AC).    

Would you suggest that I should factor in 15% repairs (3x my 5%) and another 15% for capital expenditures?

They provided a service, authorized by your tenant, much to your benefit, so pay up and stop counting the pennies that you likely aren't even going to be paying once the insurance company eventually re-compensates you for your expenditures. 

Since the property is being readied for rental use, Uncle Sam would expect that this be treated as a capital expenditure and included with land improvements.

Matthew Terui Keep in mind that the difference in opinion on how to manage them could involve deferred maintenance or pending cap-ex expenditures.

Most agents only work with single family homes and have no idea about what the terms cap rate, GRM, or capital expenditures mean.You have to understand that nationally 50% of agents transact ZERO business for the year, and of the other 50% that do, only 25% of them conduct more than 4 transactions per year.

Be sure you take into account all the expenses you'll be paying, like capital expenditures, etc.

Cash flow is how much money you will be profiting each month after all the cap ex (cap x = capital expenditures aka utilities, insurance, taxes, property management, etc) are taken out from the rent a tenant pays you.

A line of credit is exactly that: you make expenditures and you repay them.

Your mortgage payment will be around $3400 only leaving $2000 for property taxes, insurance, repairs, capital expenditures, and vacancy.