You have to take into account, Mortgage, Taxes, Insurance, Property Management, Vacancy Rates, Pool Maintenance, Money for unexpected expenses, lawn care etc.

@Robert Herrera Ok got it, so I understand why separate LLC for rentals but flips is it so if there is an accident and someone gets hurt like a worker during the renovation they can go after the LLC not our personal assets?

I hope there was no accidents there today because the homeowner was just trying to get something done.

Even if you plan super well, unexpected conditions or events will always arise through construction.

That wasn't much fun :) They also accidently counted my outbuilding on BOTH my house parcel and my out lot parcel, so I was double assessed for it.

Now you put on a metal tee on the end so it cant fall into the hole by accident .Now the fun part , lowering 200 feet of pipe in the well with a 30 lb pump on the end . ( here I got the neighbor to help me so the pipe wouldnt kink )  Everything else I did solo .  

>Don't forget to include all closing costs, possible holding costs, and any other sale related expenses that you might need to cover BEFORE you can get it rented.Yes, you are 100% correct on this and it makes the idea of 20% down even less ideal - I would need some money to cover the costs and unexpected expenses, which leads to either more sitting and waiting until I save more money or dropping down the target price even less.

Floors needed to be refinished, new deck out back.I had just replaced the heating and hot water system after finding out the hot air furnace was beyond repair (an unexpected expense).

The straw that broke the camels back was when I got word from him that tenants had left unexpectedly and work was being started to turn the house over. 

Once the loan is approved conditional only to the repair, we will be comfortable paying for the work ourselves knowing that everything else is good with the loan.We also asked for a $5000 concession off the price for all the unexpected structural and plumbing repairs that need to be made.