In order to decrease the chances of getting into a bad HOA community.

Some others could be bank reserves, your reserves, vacany factor, and also concessions/bad debt

It’s a low-income area, but not a bad neighborhood.I just viewed the property with my agent and it looks great.

You may want to reconsider your ultra conservative investment approach in order to grow and actually achieve positive cash flow.If you are buying homes worth 50K or less and renting for $850 + per month you are not doing as badly however you should try to find a way to pull all your dead equity especially before the markets turn and you end up losing it all.Paying off rental properties is not investing it is hoarding of cash and is extreamly expensive.Just food for thought

So not as bad as 29203/4. 

Yeah, doesn't sound like a bad deal by any means.

Leaky drain pipe, bad HVAC thermocouple, bad thermostat etc that take less than 30 minutes to fix.

Most people don't use banks because either the property doesn't qualify for it (i.e. really bad shape) or they themselves don't qualify for it (high DTI, lack of W2, bad credit, etc). 

Buyer will be less qualified for the same amount of loan; in plain English, buyers cannot afford the price of the property that he or she is looking at to buy at the higher rate….An educated buyer agent should search more (work harder) to find a similar property for his buyer, it is not a bad idea to search for motivated sellers or short sales.

Bad idea?