If you can't cover a 5k emergency, live for half the year without a tenant, or wait out a 10-20% dip in the market, you are probably being too aggressive. 

We rented through a 3rd-party management company - and have been flooded with maintenance fees, new appliances, and emergency handyman service charges throughout the 3 years we have rented out the home.

Only assets in the Trust will avoid probate and be protected from future fiscal emergencies.

What will you do if you can't get bank financing at that point, if the appraisal comes in short, if your downpayment had to be spent on an emergency?

Having a 3-6 month emergency/mortgage fund in case a house becomes and stays vacant would be wise; with a separate account for separate accounts. 

, rent collection, eviction, emergency maintenance.

We have tapped our resources w/out going into our emergency funds as much as we are comfortable.My in-laws have a HELOC on their primary residence and have offered to let us use that as they have no intention of using it for anything.Are we allowed to borrow a down payment? 

We have 40k in savings and 20k emergency fund as well.

It's great to use other people's money, but you DO need access to capital from time to time so you should figure out how to create at least a small emergency fund. 2) Are you looking at house hacking?

PWC's "Emerging Trends in Real Estate" Annual report goes into detail about how and why Nashville's growth is rapid, organic and sustainable, and how that creates one of the best real estate markets in the country.