Not much later, I met the owner, quite by accident, at a networking event and two years later, I agreed to partner with them and consult for the American Association of Private Lenders on their behalf and add real value to all my fellow real estate investors. 

I bought them freshly rehabbed so any repairs were unexpected.

If you are looking at SFR, once you hit the 3br point I would imagine you are marketing toward families where you might command higher rent with 1.5-2ba especially if you are going where the market is hot I wouldn't constrain myself to 3/1, I originally constrained myself to 3/2 when I moved to Ohio and it wasn't until I accidently did a search where I forgot to change the 1->2 and I found my current house at a steal.

Another unexpected 3-grand. 

(we don't need the cash flow, but it is nice building up a cash pile for unexpected costs).

I just feel like these cost are significant when using leverage, any hiccups in terms of vacancy or unexpected repair will wipe out an entire year worth of cashflow.

By accident (a home purchased to live in, but became a rental property), I own one SFR rental in a high end neighborhood which rents for $3000 month which has been rented to the same tenant for 7 years now.

If you have trouble finding a renter, or have unexpected expenses, you may have to subsidize out of pocket.Other questions:How long will you hold your rental?

Just about every part of the country experiences freak accidents (hurricanes, mudslides, tornadoes, hail storms, etc.).

Hi Anish,I always like to tell investors that its hard enough rehabbing when your within a 5min drive from the property lollolThere are always unexpected issues that arise and than need immediate attention.