Or do I buy out the owner and include the left over debt and rehabs at an all in $113K? 

Or do I buy out the owner and include the left over debt and rehabs at an all in $113K?

I plan on doing this by growing a large portfolio as quickly as possible while being careful not to over-leverage myself.In order to grow my portfolio as quickly as possible without over-extending my debt, I will create equity through value add opportunities.

While 99% of the rest of the people we know are still adding bad debt and justifying it because it is the normal path. 

When calculating vacancy and bad debt, do these have rule of thumb too? 

I'm thinking it would cost you at least $1,100-$1,200 a month just in debt coverage. 

I also recently became debt free, so the thought of having a mortgage on the rental and another mortgage on a house of my own scares me a little.

@William JenkinsDoesn't sound like you would use financing for the contemplated investment of retirements, but if you did it would need to be non-recourse (either via a Solo 401k or SDIRA) and if done via an IRA subject to Unrelated  Debt Finance Income tax.

The other thing to consider is that agency debt on loans over 1 million dollars is actually more attractive as far as interest rate/terms than a lot of conventional financing.

Get rid of debt, build a budget, and save.