Here's how we screen:A bad tenant can lead to thousands of dollars of losses via unpaid rents, legal fees and property damages.

. $20K in reserves isn't a lot if something goes horribly wrong and there are damages if you default and he takes the property back.

If you are trying to piece everything together yourself remotely I think the time and brain damage and extra cost in time and cash you would be better to go yourself and do it. 

The property age, location, interest rate, etc. will influence whether one cashflows at 2%. 1%, or 0.6%. the rules as someone already pointed out is just a guide.

But I draw the line when there is risk of damage to the property, annoyance to the neighbors, health concerns, pests, etc.

Quote from @John Morgan: ... it’s extremely rare for a lawsuit to go for over 1 million in damages.

I'd check for that before installing LVP and replace the subfloor where needed and treat any termite damage. 

Really low prices bring dregs and all the work you did could get damaged.

If I was the tenant that got damage from another tenant's water heater, I would expect him to pay the bill.If it was a pipe in the building and not in their unit, then I would think the landlord would be responsible.

(high rise condo) The vent does not work and as a result humidity damaged the ceiling.