I noticed the "References" section on my profile (shown in the screenshot below). 

At this figure, your rent/purchase price ratio is well below 1%.

I never go below 8.34% (one months rent) for reserves.  

This saved me plenty of money.The same tenant has already offered to mow the lawn likely because he loves the location, realizes his rent is slightly below market and does not want to be kicked out of the month-to-month lease.

Also, below is an image I just took from zillow own website.

HOWEVER, you must have ZERO timeline for closing on a house, below expectations for customer service and competency, and definitely do NOT think that they will approve you for mortgage amount even close to the value you could get otherwise. 

I've come to realize if they don't have equity are you really going to be able to get a below market deal unless you work a short sale or foreclosure?

Please see updated numbers below in chart that includes insurance. 

Consider many areas collecting just the rent ( cash flow profit) are just as speculative as the equity gains featured below if not more speculative IMO. 

Anything below 500-600k to buy is so ridiculously competitive you pretty much have to be a contractor yourself to make a worthwhile profit, but the deals get progressively better as the numbers go higher.