If you don't have access to ready cash, then I would definitely have reserves to cover you when things get tight.  

@Colin Perry If your purchase price covers the 1st lien and 2nd lien ( IRS lien ) they would be paid in full.

BTW, as long as the lease payments cover your existing PITI, many lenders will take a high percentage of the rent towards you income, and it might 'ding' your debt to income ratio a bit, but probably not prohibit your going for another property/loan.  

Another food for thought is that if you do your own work and something goes wrong, your insurance might not cover it.

Buy another property I have an eye on in my target neighborhood for 90k with 20k rehab. it cashflows well and I would use the sale proceeds to cover the property, then refinance after rehab and pull out money again for BRRR. property would build about 35-40k in more equity following rehab in addition to the good cashflow.option c: 1031 into multifamily or larger property find a 600k property, put 150k into property as 25% down, mortgage the rest.

I don't mind it because I have enough reserves to cover the mortgage until the deposit comes in.

HOA fees cover for those.

Bond(promise) for title(ownership) is an agreemnt for you to become owner in future if you meet your obligations(make payment, keep taxes paid, insurance covered, etc)You don't need permission from you lender/seller to dispose of property.

the filing to get the two or three permits, like motel permit and short rate stay permits is not the issue, they want us not to take any renters until this is obtained that is the killer here. we have retained an attorney and are hoping they understand that this is a busienss and will suffer hardship if we stop the renting till permits and licenses are issued'

None of our licensing training covers how rental income works in the mortgage math, and you can go a successful 20 year career without ever learning it.Go to your local REIA, ask who is doing loans for those folks.