to me it doesn't make sense to separate out repairs and capex so i just use 8.33% for both combined as default. that's assuming i don't anticipate any major capex to come up in the near term (e.g. roofs/windows have been replaced recently).

., also, have you considered a (rehab) 203K loan on top of your anticipated FHA loan, rather than using your own $60k cash for the rehab?

In the application, have the applicant initial a section where you explain that you adhere to all federal and state fair housing laws, but that decisions regarding tenancy are complex and involve a combination of multiple factors including, income, anticipated tenancy, etc., etc.

Though I have been a working actor throughout the years, stardom is taking a little bit longer than I anticipated.

I'm anticipating electrical repairs, replace any charred framing, obviously all new drywall floors and ceilings.  

Slightly less than anticipated but all you need is 1 deal!!! 

You may be able to generate a surplus of cash if the ARV comes back higher than anticipated.

Holding time is a function of rehab time and seasoning time required by the bank.ARV: market value after repairs, as established by an appraiser at the time of refinance (not the day you purchase) in this case.Ability to rent and cash flow as a rentalAbility to refinanceIf any one of those assumptions above goes pear shaped, you may be stuck with hard money for longer than you anticipate and if you hold onto a hard money loan long enough, then sooner or later it will eat you and your investment alive unless you have outside sources of funds (W2 income, etc.) to throw at it.

Also, $58K is a small loan and I anticipate killing it quickly. 

I don't anticipate 14% maintenance or 10% vacancy, but thinking worst case scenario always helps me evaluate the deal and helps mitigate any unforseen circumstances.