That 5K could be eaten up quickly by repairs that were not visible up front, and then there is still the fact that there will be closing costs too that will consume that 5K (even flat fee listing on the resale with a 2.5% commission to buyer's agent will take more than 3K alone).Maybe this can work as a "subject to", but that is another topic - and it might not be a good candidate for that approach because you still have that big rehab number.

For example, for insurance, maintenance & repairs reserve, utilities, and PM, i generally assign 10% of the monthly rent to these. 

The rest of the money that is budgeted is going into the reserve for CapEx, repairs, vacancy's for couple of years to build the reserve.My Conclusion:As long as the majority of my living expenses are paid such as: P&I, taxes, water/sewage, able to save whatever is left over for any repairs and/or CapEx, I should assume that I am House HACKING appropriately for the circumstance?

I am trying to come up with an offer but I need to figure some rough repair costs and ARV first.

The buyer takes over all maintenance, repair issues but the seller can get the home back  if the seller doesn't pay.  

Terry Lao yes I agree, the formula should include vacancy, repairs and capex.

My property manager is extremely reluctant or just has no urgency when it comes to larger repairs/ maintenance. 1 example: My properties sewer has tree root intrusion and I asked them to get a quote 2 weeks ago, and have followed up twice and got a we're working on it response.

Would it be a problem if i have 4+ places already and want to use HML to buy, repair...and then refi out with a conventional loan? 

It needs 30k in repairs.

So if you buy at 70% or ARV minus repairs, the financedd amount will be enough to cover repairs and an additional 5% additional.