I have heard people holding 4-8% of their property value as reserve, also heard 6-8 months of expense.

Doing a bit of research, there are many great options and it's quite overwhelming to pick a state, a town and fix on neighborhood/zip code - I think I am having a bit of analyzing paralysis!

Is the mortgage extremely expensive?

@Curt Davis,That's an interesting perspective regarding lease length.I understand your point (multi-year leases would appear to provide more consistency and peace of mind for the owner and potentially less turnover and placement expenses over time).

It seems like you're figuring your debt service into your direct operating expenses.

The reason I invest in condos as SFR are really expensive and have negative cash flow on Bay Area .

Areas prone to drought and wildfire probably have increased dwelling premiums also.That being said, if this is normal in those areas, the rent should probably cover those expenses without too much trouble.  

The only apparent necessary capital expense is redoing the roof.

If the contractor estimate is needed for me to bid on something but contractor will not come over unless it is paid for to do an estimate but since I am not sure if I will win the bid and can't justify an estimation expense, how do I handle the situation?

Personally, as long as my expense - including the HOA fee, is acceptable, I am good with it.