I shutter a bit at the "none of it could have been predicted" statement. 60K is a big chunk of cash.Yes, there are many items that can come up but as with house flipping and other renos the small signs can be missed.What items caught you by surprise?

Another fun thing we have done is the key box we stick on doors for a house , put something fun in there, a surprise, and give the kid a code.

Those reserves were meant for unexpected expenses, not for all my tenants not paying their rent for the foreseeable future. 

I think you would be pleasantly surprised if you ran numbers today. 

Unexpected rot, water infiltration, faucets, Dishwashers and a lot of other stuff. 

Sorry, I never had to deal with tenants directly before but when I called the number I had on the contract they were equally surprised that someone had used their home loan application info and they had never applied to rent). 

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Not at all surprised you have high humidity; the hydrostatic pressure is forcing moisture through the pours of the block, past the interior cell (even if not fully grouted) and out the pours of the interior face. 

You can learn a lot from those two things surprisingly.

While many believe it's unnecessary because it's a conveyance between family members, it's always possible there's something in the record that might be an unanticipated and unpleasant surprise.