Reserves are the only way to assure that some misfortune that befalls your precious investment doesn't become good fortune for the next investor, who comes along and picks up the pieces when you're forced to sell.

You do have to check though as if you were not the first buyer some warranties in some states do not carry to the next purchaser  The builder warranty would transfer but more than likely be outside the 1-2 yr window if not new construction However, if it was a resale Texas requires notification of any defects via a Sellers Disclosure as surely this issue would have crept up previously and an action against the previous owner would be in order.

So make sure that your lender re-assures that you will be able to continue to qualify for more loans with your higher payment.  

Rest assure that such agent wouldn't have swore allegiance to you.

I have made contact with the owner's son, who has assured me they want to buy the house back.

If I have to pass on a deal because I've got capital tied up in another property, I can assure you that if its a good deal I will put you in touch with a buyer.

My goal is to NEVER have a property off the market for more than one weekend without some assurance that I'll be reimbursed for my lost time (for example, keeping the EM).

First is assurance that I'm making wise decisions / deals.

Ironically she spent the whole lease assuring me she made plenty of money to pay her rent and sending me her poi a couple of times to make sure I would extend the lease.

Rest assured the lender will foreclose, and the loan does give them the ability to take the house.