When his tenants can't cover their part of the rent he pays them to do work on the next house or to mow lawns at his current properties. 

Personal property would cover things like your refrigerator.

Look at your rents and run scenarios for varying scale of market softness...can you still cover you expense?

The same type of houses are selling for 190-210K ARV the sellers starting offer is 75k and is motivated, and is willing to negotiate on price, also the repairs would be heavy.

My investing partner does not think we need to budget for Cap Ex yet because we are making a lot of heavy repairs from the start and she wants that extra cash flow to roll into future properties.

I was just sent the insurance info that outlines what is covered but will have to get the bylaws from the association.

I thought this was my best option to get into real estate but listening to Uncle G , he says 16 units as a min for cover.

@Matt Shields in the long run I’m not overly concerned as this corporate entities have huge overheads and as margins get smaller and smaller they will have a tough time sustaining themselves.Small operators who work from home or small “mom and pop” offices will do better as they will be able to live from previous profits as long as they don’t squander the proceeds.If we have even a minor correction in the market, the large corporations could be left sitting on a lot of negative value inventory that will need to be liquidated In order to cover overhead and can only benefit the smaller entities with cash to scoop them up.My 2 cents for what it’s worth.

They have 3 choices get their buddy to pay,  Cover his rent, find a new roommate and choice 4 is be homeless, my guess is they choose one of the first 3.  

You may also want to ask about taking a slightly higher rate in exchange for a lender credit, which can cover some of the costs if it makes sense.