These number are obviously fictitious and have no bearing on any real deal but you get the idea.That said their is something to be  said for all cash purchases.

The lease doesn't terminate when someone new takes over.Having an umbrella insurance policy has zero bearing on managing property.

BUT....bearing in mind Andrew's original caution about the "lesser of the two number's" you could still get all your money back out of the deal fairly soon no?? 

You may already know this, but it bears mentioning...if you refi with a conventional loan, i believe that'd require 20% down.

However, do bear in mind that houses that are selling for 10-15K over asking price are being sold to RETAIL buyers from sellers who could afford to spend the time and money to get the house in tip-top shape to sell and who have the luxury of waiting for the sale to close.

Eat at the DFAC/chow hall and put your money into high interest bearing accounts that are fairly liquid.

Bear in mind that conventional lenders allow you to use part of the income from the building to qualify for the mortgage.  

Thanks for bearing with me,Dan

I currently have offers in for properties in Joshua Tree & Big Bear, CA.  

Suffice it to say, as a buyer it means nothing.A true "Market Rent" is whatever the market will bear.