If you really want to play it safe you can use 8% as that would represent each unit being vacant for one month.

Your labor is in your mental welfare, making sure your investment is safe.

And no utility connection costs, that was paid when the house was built, so all you'd be paying now is perhaps for a new water meter (the device itself, not the connection fee part). 

I’m worried that, as a beginner, if I screw up I might find myself in a real pickle if using a more risky financing vehicle.OR maybe play it safe until we get our feet wet and then look at expanding into other finance options later?

That makes me proud and happy to be a part of my city’s revitalization, however small my part may be.My Pros and Cons:3 Pros:Price points are low even as the city's economy is growing in many sectorsROR (12%-18%)Lots of solid brick, historic and craftsman buildings3 Cons:Hot, muggy summers and cold icy, wintersYou need to know the city to be sure you're investing in a safe area; two blocks one way can be completely differentRacial tensions; one of the most segregated cities in the USAs real estate investors I think we must be business people and also dreamers, whether the dream is about the impact we want to have on our community or our own lives.

Upper unit was renting for $750 and lower unit was renting for $720. 2-car garage, very safe area.

I called a company and I can become a certified 'Lead Safe Renovator' for $180 and an 8-hr course.

(A) A landlord who is a party to a rental agreement shall do all of the following:(1) Comply with the requirements of all applicable building, housing, health, and safety codes that materially affect health and safety;(2) Make all repairs and do whatever is reasonably necessary to put and keep the premises in a fit and habitable condition;(3) Keep all common areas of the premises in a safe and sanitary condition;(4) Maintain in good and safe working order and condition all electrical, plumbing, sanitary, heating, ventilating, and air conditioning fixtures and appliances, and elevators, supplied or required to be supplied by the landlord;(5) When the landlord is a party to any rental agreements that cover four or more dwelling units in the same structure, provide and maintain appropriate receptacles for the removal of ashes, garbage, rubbish, and other waste incidental to the occupancy of a dwelling unit, and arrange for their removal;(6) Supply running water, reasonable amounts of hot water, and reasonable heat at all times, except where the building that includes the dwelling unit is not required by law to be equipped for that purpose, or the dwelling unit is so constructed that heat or hot water is generated by an installation within the exclusive control of the tenant and supplied by a direct public utility connection;(7) Not abuse the right of access conferred by division (B) of section 5321.05 of the Revised Code;(8) Except in the case of emergency or if it is impracticable to do so, give the tenant reasonable notice of the landlord's intent to enter and enter only at reasonable times.

I've done this in numerous common areas (hallways/stairwells/etc) for the updating of lighting & for fire alarm devices.

Its located right across the street from the local detective who really keeps this area safe.