I am obviously looking to maximize my coverages and protection, while minimize my taxation. 

The cash flow for this price point isn't that great, but for minimal invested capital (or hopefully none at all), it's a pretty great return!

So I am thankful to able to find a community where I can find my own place in and learn and share experiences so mistakes can be minimal, maybe.  

What can we do to prepare for the bank to not have any or minimal push back?

I am a new investor with minimal experience, interested in learning everything I can about investing in rental properties.

The software was so poorly written, with minimal explanations and vague inquiries, that I ended up doing a ton of research offline anyway.

You should keep that amount as full as possible to minimize your potential damage in case any major mishaps happens.  

However, I don't know how well, if even possible, you could negotiate with a bank on a short sale/foreclosure.But if, while I'm looking at different properties, I can make note of how long it's been on the market and bring it up in the discussions, I want to be a least minimally educated about the average time on the market so I don't get laughed off the negotiating table.

So your payments on the money taken out would be minimal.

It's not a big deal because I think the cost to fix the flooring is minimal, but it is more on principal.It sounds like you did not have any damage to the dwelling as a result of your water pipe issues, so you didn't file an insurance claim, is that right?