But this factor 2 just seems too large to me.

Cash reserves are a way to help you mitigate risk....but that is a factor completely independent of the risk involved in the activity.

What can be built over the Storm Drain easementAny other limitations/factors/etcThe land has been on the market for 55 days and had a pending sale a month ago that fell through.

Let me know if it should go elsewhere.I closed on a 3-unit MFH on 12/3/2018 which had existing tenants (which was one of the selling factors). 

When you're evaluating different turn key companies, in general, the ones to avoid are the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)Don't allow for your own independent property inspectionAre not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)Require you to pay for any renovation upfrontSell only in cheap. low end neighborhoodsDon't accurately represent the neighborhood/property classificationDon't have consistent rehab standards for all propertiesWe've been active in Indianapolis since 2010 and would be happy to help.

@Joan Pla yeah, factor the cost of the 5% vs. the FHA.

To hard to give advice on this without all the facts.I quickly look at two factors. 

The factors I have considered so far are that keeping it open will allow me access to more money if needed for something like a rehab without using my credit cards.

I corrected the Ad and had about 100 responses for the typo ad.It really should be obvious that Vacancy is dependent on 3 factors, 1) the Asking Rent versus the FMR ,2) How dense is your rental Market and 3) What is the current vacancy rate in your target area.If you build your Business Plan with these details, you will be surprised how accurate they can be.

There are many investors who have experienced challenges with 3rd party management (and unapproved concessions are unacceptable).Now the tough love part...it's going to be difficult to make a profit with a $500-600/mth rental purchased for $55K (and impossible with 3rd party management...have to factor in extra vacancy and higher repair cost).