So, he's claiming the home warranty won't cover... fine, what's the repair cost?  

Perhaps, they can get out earlier such as July so you have time to do the necessary repairs so you only have one month of vacancy.

If the property does not require an extensive rehab and just needs cosmetic repairs then a standard landlord dwelling policy in most cases depending on the carrier.

If cash flow means you make $8 more than your mortgage payment in month 4, awesome, you have $8 for that month.But.... if you factor in closing costs, make ready costs, leasing costs, repairs... it's typically years out until TRUE cash flow, with a value add or a turnkey (unless you absolutely knock it out of the park with a BRRRR and then somehow cash flow after the refi, which I guess is possible but very unlikely.)

Repairs: Add a pool ($77.7K).

For flips, calculate the after-repair value (ARV) and subtract purchase, rehab, holding, and selling costs.Pay attention to location, rental demand, and the property’s condition.

There are ups and downs with any property and there will always be variables with tenants, rents, repairs etc.

Remember, in this model, you are planning on holding on to these properties as rentals so pay now in quality, or pay later in headaches and repair costs.

Acquisition Target: $730K-$780K; ARV: $900K; Repairs: $120K.

I have been investing since 2008 and have purchased everything from single families and duplexes, to 250+ unit multifamily, to assisted living, to shopping centers, to industrial and more.