Is there a rule of thumb in terms of reserves/savings you must hold before buying your next (beyond the down payment) - in effect planning for the worst.

wtf-had to replace deck, etc etcSo I don't trust these people at all, I think they're definitely lying about intending to close, however they're paying market rent and the property is cash flowing $300/mo so it's not the worst situation. 

Worst case is 1year and if your willing to lose your deposit you can leave any day you want.  

Typically, dream homes are the worst purchases of our lives.

I was fortunate that there was enough room in the deal that I could make mistakes and still come out ahead.

I would rip up the worst areas of the particle board maybe all of it and replace it.

Very worst case, I'll post an ad on Craigslist.

My concern is that regardless of making the time for this, I will most definitely feel rushed and I tend to make some pretty big mistakes in that scenario.

It’s not terribly hard, but a mistake at this level could be really bad for you. 

At worst, you could lose your original investment capital, but you could not lose more than that (e.g., you can’t lose your house).