Secondly, depending on the interest rate you get for the new loan - a highly leveraged property may not cash flow or cash flow well - so one missed month of rent due to vacancy or a major expense comes up - that wipes out your cash flow for the entire year (or more!). 

It all depends upon how long you can wait.  

Hey @Agustin Rossi - the answer is that it depends on your offer. 

Ripping out a bathroom for 5-10k depending on your contractor connections or personal skills doesn't seem like a good pay off for a rental so I look for creative solutions for working with what we have...There is prob no exhaust fan system so you either need to keep the window or install exhaust fan system.

I am a builder in the area and you can make at least twice as much depending on the area of Charleston you are in and the value of the homes in the area.  

In the buy and hold situation, depending on what you buy it for, the expenses of owning/taking care of it, and how much you can rent it for, you could have some cash flow each month and have a second property that appreciates each year. 

I think it depends on your goals and what you want to get out of it.

Second, general maintenance and repair costs depend on the condition of the house, the age of the house, and who is hired to do the work.  

Also depends who you intend to rent to and the pet policy. 

As for your out-of-pocket costs, it really depends on the property and your specific situation, but budgeting around 5-10% of the purchase price for these extras is a good starting point.