I'm considering converting the shed into a DADU to maximize the use of the space and earn some extra income. 

(Give that to sellers, they picket $100k after paying off the loan.) and then pay them 4.5% interest (what they could get from the bank.) now you’re talking $750/yr extra interest, and it’s being paid to family. 

I do not recall them ever discussing how you cover the cost of property repairs and capital expenditures if you are not concerned about the property making extra money each month.Kyle some investors are in a different place than others.

maybe just me, dont go cheap on TP. you can buy inexpensive, but make sure it doesnt feel cheap. its worth an extra couple of dollars so guests dont remember that everything felt cheap

Find you an agent with a team behind him of solid general contractors, lenders, and property managers as well as other necessary contacts that will make navigating the best neighborhoods for solid rentals that will help you achieve what your looking for (Under $180K for SFH and/or a duplex, cashflow, and $1500 - $2000 in monthly rent) Here is one extra bonus to add into the mix for your criteria..

So, the landlord makes an extra $1000 per month with the same fixed costs.  

Typically how  much extra should I budget for, for these unknowns? 

Further Evaluation (Professional based)Comment 2: Yard wetComment 23/24/25/26/27: Electrical WorkComment 4/5/6/7/40: Glass repairs/sealedComment 28/29/30: Hvac repairsComment 49: Chimney inspected/cleanedRepair (Handyman based)Comment 3: Vegetation removalComment 12: Leaking hose bibComment 13: Sewer cap replacedComment 19: Door knob replacedComment 22: Replace all batteries in smoke detectorsComment 38: Replace clamp in sinkComment 39: Replace dishwasherComment 41/48: Dry wall prepareComment 44/47: Door repairHave you decided on a property manager yet?

That is assuming your DTI can cover the increased mortgage payment.If you have use for that extra $100k that you would get back right now then don’t wait.

Maybe they want bigger lot, more land, extra lots.