It depends on where you live but enough for the down payment plus one of the most expensive repairs you can think of like a roof repair or minor foundation issues if you live in a place where this is common.

If they don't qualify for a loan due to bad credit or lack of a down payment when they start renting the house, they will have a hard time saving up the necessary money and repairing their credit in the 2-3 years during an option period. 

This lease does not change the length of your lease term (month-to-month); it simply updates relevant matters now that I will be assisting you with your housing needs.

You've posted your return with no HOA fee, no vacancy, no reserves for repairs, no property management and no letting fee....with those calculated in your returns are much lower. 

Found a quality tenant, used excellent management, and have made repairs quickly.

Found a quality tenant, used excellent management, and have made repairs quickly.

The vacancy rates and repair need to be higher for 3 plex. 

@Chris Mason Since we've been in a really strong market.....if Im making an offer on a property where I can get an appraisal contingency (suburbs I can, city I cant) and I know the listing agent is going to be subpar and not get the property to appraise (in my opinion this is the listing agents #1 duty) Ive been putting into the contract "seller will cure any appraisals issues that arise by making any required repairs and adjusting the price down to the appraisal value."  

Try Private Money if you can find it or call around to local smaller banks and tell them what your doing and ask what loan would be suit your needs and ask what their rates are.Also I personally thing your Vacancy, Repairs, and CapEx is low.

Id say your best bet in determining how much you need for reserves for emergency repairs would start with a good home inspection.