Is it covered by some bonding or insurance the inspection company holds?

Use tools like the VA loan for house hacking and your Basic Allowance for Housing (BAH) to cover living costs while building equity.

Aside from downpayment, you want to have a solid emergency fund in place, something that can cover unexpected repairs, vacancies, or any other random costs that pop up.I’d also recommend saving more than you think you'll need and keeping a close eye on your expenses.

I often have tenants who don't pay the last month's rent because they think the security deposit will cover what is owed. 

Let’s break it down.Moving to Your Next HomeYour equity could help you cover the down payment for your next home.

This just covers the basics: how many people, do they have pets, what is their timeline for moving?

You’re giving very limited information which forces people responding to cover unnecessary points. 

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

If I rent it out and the rent monthly payment let's say covers the mortgage and HOA, the cash on cash return will be $40K(appreciation)/($ 42K (Down payment) = 95% and it will be 1.95 to find the cubit root and it is about 25% yearly return on my initial investment. 

There is a lot of stuff to cover, so try to make as much time for it as you can while working your W2.