Imagine having a singular tenant paying $1825, covering all utilities, and holding it down 4, 5, 7yrs. 

Investment Info:Single-family residence buy & hold investment in The Villages.

How much should you hold in reserve?

That data would be sales price after remodel (the true numbers some agents really don't have the experience to be comping the property), the days on market you will experience (this is great info because you want to recycle the money quickly), and resources to sell the place fast not slowly which you do not want this because this could put your holding costs extremely high and push the property to little profit or no profit. 

My strategy is long term buy and hold.

The issue is not the contract, the issue is going to be enforcing the contract, the individual who was selling this could hold this up for years and cost you tens of thousands in legal fees, and then they file bankruptcy and stall it another 5 years.

I wouldn't recommend a standard buy and hold rental because you'll have to pay both your HELOC and mortgage on the house. 

Our city holds a lot of gems if you know where to find them.

Are you comfortable analyzing ARVs, purchase price, 70% rule, rehab costs, holding costs, etc

Investment Info:Small multi-family (2-4 units) buy & hold investment.