Am I underwriting conservatively, accounting for higher interest rates, inflation, and potential market softening?

Based on the excessive amount of hours spent and the lack of prior authorization as agreed upon and taking into account our prior communications regarding minimum acceptable owner distributions, I must insist at least the labor portion of the repairs be refunded.

You must find a team with a long track record of experience that you can hold accountable.

This let's you hold all adults accountable in case of lease defaults. 

Rancho is working class, solid neighborhoods, decent schools, and lot of first time home buyers looking for a decently sized house.

By the time a property is formally put up for sale in a town that size the locals have know it was going to be sold and had their chance at it.

If a problem arises with the property, the City will attempt to contact the owner and hold them accountable.

He determined the price and terms for the property, and according to the agents involved, he consulted with accountants and attorneys before signing the contract.

It probably won't come close to $150K.Run the numbers if you put the profits into a savings account paying 5% interest and see how that compares

That's aside from a renter placement fee (from a property manager or real estate broker), so with that into account, it could be about $3000 into the red on year one of a rental lease.