Nothing held back for maintenance because the houses they recommend buying are all newly rehabbed, and nothing held back for capital expenses because you should sell them in less than five years and move into multifamily investments so nothing major should break before then. 

I just moved so that I could convert my primary residence into a rental.

We're occupying the house and plan to keep the property for 5-6y, after which we would either move and hold it or sell it.

This can be particularly appealing if the seller is facing financial difficulties, needs to move quickly (perhaps due to relocation, divorce, or other personal issues), or the property has little to no equity and they can't afford to sell it through traditional means without bringing money to the closing.

With all that being said, I'm hoping to start using sub contractors to handle the majority of my jobs moving forward, but I'm running into a small snag.The majority of the houses I'm buying right now I'm using hard money to fund.

My (excellent ) tenant moved in 8 years ago, has never been late with the rent.

The information contained in this post is not to be relied upon. 

@Eric KajkaTHanks for the post   1) your FIL  will have  approx 2-3%  of selling expenses  assuming there are no realtors involved ..assuming 600K sales price  and existing loan amount  he will likely  net   a bit under the  400K  needed for AZ house ...he  will also likely have  some  costs  involved  with moving and buying the  AZ home .   

You can only get the FMR listed on the HUD site if the tenant moving in has a voucher that meets that amount.

If the numbers makes sense, which likely they will since you inherited the property and there is no mortgage, then renting it out debt free could be a great move right now.