You are the underdog.

So my point would be that the appraised value isn't always equal to actual value on a purchase appraisal.If everyone is month to month you have a lot of flexibility to go back to them and say, "Hey, we just got the property tax increase for the year and this will necessitate an increase in rent to $X,XXX/ month.  

An added layer of complexity is that the guy did not have a will which may also necessitate getting a lawyer involved.Help me out BP!

Pragmatically I thought that having more rental properties would diversify my risk from vacancies.The owner occupancy requirement I was referring to the ones necessitated for a FHA loan.

Ask that these expenses be covered under your liability coverage, as the leak was not caused by your renters, but it  did necessitate the moving of items to prevent further damage. 

The money is there when you need it - why not enjoy the full cashflow on your first project until the first of: 1) you save up a management reserve (6-months' gross rent would be a start) or 2) you find a project that necessitates pulling the cash out?

Plumbing repairs necessitated by tenant(s), family, guests or invitees, carelessness or neglect shall be at the expense of the tenant.

They aren't afraid to walk away from a perfectly good looking deal because it simply isn't in their 'circle of competence'.Also, be aware from the start that different strategies necessitate different models.

Some people enjoy golfing, some playing Video games... for me... it's business.8) I'm an underdog that rises to the challenge despite the disadvantages in life.

I would say it is on life support because after refi the negative cash flow necessitates extra reserves.