Not only does the answer differ for different people, as their goals, objectives and risk tolerances differ, but it also differs as life progresses.When I was first starting out I tried for 100% leverage and was unconcerned with keeping a cash balance for contingencies.

Just decide on what you want to buy and if it fits your long term objective and then if so just get it tied up, go to the bank get financing, complete the purchase, then flip it or rent it out.However, before you get started I "strongly" recommend something...you whouldn't practice law without first studying for the bar exams, same with REI.

If you're in such a tight financial situation, change your objectives on this deal from making $30k to making a nominal amount and learning from the experience.

What is your objection with him moving out early?

We are looking to discuss:Goals - Milestones; Objectives Operations - Financial; Property ManagementMarketing StrategyStrategic Management - Building new relationships and deepening existing relationships; Growing our TeamLegal   I have scheduled a couple of hours to dig deep into the above and create the roadmap.

(I would never want to manage my own properties.)Finally, we start with our client's investment objectives before looking at markets, neighborhoods, and finally specific properties.

That is a clear, defined objective.

If that's SFR's, let a professional list and sell the land, get a 1031 exchanger involved to handle the proceeds, and purchase replacement property(ies) that suit your investment portfolio growth objectives.

That objective comes in two basic sub-categories: people who value current income, and people who value future appreciation. 

The property has to be purchasable at that price, or you don't do that deal.I know it seems like semantics because, yes, you can rearrange the formula but if you have the foregone conclusion of what the purchase price is, you could be tempted to fudge repairs or choose slightly better comps to make it work, but if the comps and repairs are figured out objectively, then you can't argue with the MAO.Hope you follow my thinking.