Thank you for the constructive criticism.

This will be critical, because you don't want too complicated a process that the insurance companies overcharge you (not sure if this could be an issue but it strikes me as a possibility)- Lender. 

As always, I'm open to any advice and constructive criticisms! 

The only reason I am responding back to you is to encourage you to think critically on every recommendation given to you and to have more than one option for getting a deal done. 

As always, any advice is appreciated along with any constructive criticism.

If you really like them, have a critical conversation for how you would like an issue like this handled in the future and put it into writing.

I just know the time investment that rehabs and new construction take and the criticality of eyeballs on what's happening. 

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

Leverage is critical because it magnifies either your gains or losses - it's really a question of your confidence in the deal, your ability to execute, and your tolerance for risk.

As far as value usually these are valued based on a cap rate. of course the quality of tenants  and length of the lease are critical .