They are a well rounded and responsible (good credit) family and he has done most of the maintenance and large repairs over the 15 years she's lived there.

They will eventually break down and need repair or replaced.  

It may mean the repairs are significant, or it is in an undesirable area. 

As Kenneth said, make sure you factor in vacancy (8%), capex (5%), repairs (7%), prop mgmt (5% even if you do it yourself).

Other than not being directly involved with the real estate (homeowner is responsible for repairs, taxes and insurance-which can be considered a pro) They claim their default ratio is 3% and that they have no problem getting homeowners to purchase.

I’ve renovated the house from top to bottom, removing walls relocating bathrooms etc. and last year I sold off the extra lot which was now on a new road and 1031 exchanged it for a fixer-upper in Nashville Tennessee, repaired it and that is now rented out.  

Also if you have rental units you want to make sure that you have sufficient reserves should the need arise for a major repair. 

I'm an out of state investor so I'd prefer minimal rehab/repairs.

I purchased the property for $10,000 and will need approximately $15,000 in repairs (I am doing most of this by myself with my business partner.

However, if vacancies do occur you are at least covered for one month.5% is okay for Maintenance/Repairs.1% for CapEx is crazy!