You could be doing a disservice by qualifying someone who prob won’t be able to afford it if anything unexpected happens down the road.Would you finance a car to a kid who can barley afford it and jeopardize his financial future?

These small things can eat significant cashflow.Expect a lot of things can go wrong and account for those unexpected things.

@Fred EnghA broker would never "by accident" make their cap rate too low, right?

We have been in the contractor business for quite some time, but this is an area that we have not exploited and want to be sure when tax time comes around, the evil IRS doesn't take an unexpected amount of the profit margin we weren't prepared for. 

There has been unexpected deferred maintenance that has delayed some of the process recently, and we have been investing a lot of time and efforts to catch up on that.

You have no reviews,  you'll probably make errors,  process issues, and unexpected  things were not ready for.

An investment property, owner-occupied townhouse, 4 unit multifamily, or 60 unit apartment complex and so on are all different, but unexpected deferred maintenance and repairs can be minimized with proper inspections.

Account ClosedI try to keep 6 months banked for unexpected vacancies, repairs, etc. 

That 16K is a valuable reserve in case for when any unexpected expenses come up. 

Spend a few hundred bucks and fix this potential accident/lawsuit waiting to happen.