Gross Potential Income $132,000 - Vacancy ($10,560) 8% - Concessions, Loss to Lease, Bad Debt $0 Effective Gross Income $121,440 Other Income (Laundry) $2,500 Total Net Income $123,940 EXPENSES Real Estate Taxes $12,500 Insurance $0 Contract Services $2,190 Trash Removal $0 Electric $0 Gas $0 Water and Sewer OR All Utilities $37,500 Legal $1,000 Management Fee 8.00% $9,915 Repairs and Maintenance  $7,500 General/Admin $1,100 Payroll $0 Other $500 Deposit to Replacement Reserve $3,000 Total Expenses $75,205 Net Operating Income (NOI) $48,735 Debt Service Principal $7,384 Interest $24,857 Total Debt Service $32,242 Total Distributions to Members $16,493 Member Contribution $234,163 ROE 7.044% Member Cash on Cash Return 7.04%

I will counsel you the same as I do with my clients - be careful getting into rentals as a 1st foray in real estate investing unless you have sufficient cash reserves to handle unexpected expenses.

And can you afford it plus the reserves to cover big repairs?  

If there isa failure of Tenant to keep the landscaping in good order and to follow theseguidelines, Landlord reserves the right to hire a landscaping service atTenant’s expense (after a 10-day notice to perform covenant).c.    

DTI and DP and reserves will all come into play to name a few.

If your reserve contributions aren't at least 100% of what they should be, you may find difficulty in getting loans.  

I was thinking buy a few cash and resell regularly for a quick profit.Reading the fine print used to back in the day there was a reserve but if you only bid and they started at 20,000 and you ended at 40k then even though the reserve wasn't met they would send to the seller for consideration to accept or counter.Now there is possible counter bidding on behalf of the seller but you do not know if it's the seller ( auction company) or a real buyer.

However you will need additional reserves, I would say 12 months operating & debt service (including the 2nd).  

You will need reserves as well.

Buy a duplex or quadplex with the VA loan and leave a large cash reserve since you will not always be around to deal with issues and will inevitably have to fork over some cash.