In addition, you might look at this thread if you are still considering investing there as a counter perspective to what has been posted.Obviously you can make up your own mind.

I don't believe the 5000 sqft factors in even if trying to squeeze in additional units.

Thankfully had flood insurance in place on our rentals, in addition to regular policy.  

I'd wave the screening fee. if they meet everything except income criteria,, then ask for additional security deposit.. paid over 30 to 60 days.. 

., or in the case of automatic deposit, the OWNERS bank account information will be provided to the necessary party to accommodate the deposits.OWNER acknowledges receipt of the First Month's rent of $800, and a Security Deposit of $800, and additional charges/fees for ____N/A__, for a total payment of $1,600 at least two weeks in advance of the effective date of this Lease Agreement.

You don't want to be tripped up on this and ruin a great opportunity.I know this was a lot of information but feel free to ask additional questions if needed. 

I watch those markets in addition to the ones in Richmond because there are not many MFR near me.

I'll use this to pay for appraisals and inspections, and some other misc. costs as they come up.Then I have an additional $50k in a brokerage account.

Stefon, If there is a mortgage on the property,  then the lender is an additional loss payee.

Just take the rent and multiply by 50% and use that as a rough total for expenses in addition to any debt service.The numbers you have above yield total expenses of $33,575 (59% of rents so the rule of thumb isn't needed).