Our rehab plan will have to make some decisions between what we would ideally want and what the budget will bear.

If you are willing to put your life in danger for a few saved dollars, that's your decision.

What other steps should I take to make the right financial decision?

Your only decision is if you want to cancel your current contract and go under contract on the first one.

The IRS announced nonacquiescence with this decision (AOD 2017-06, 2017-33 IRB), stating that the requirements of Rev.

Yeah there were a few points where I was questioning my decisions... the appraiser projected $950/month in rents when I had underwritten at 1300-1350 (albeit after light rehab).

As Im typing this Im thinking spend as little as possible to get into a prop that cashflows and hold onto as much as I can for #2.WHAT OTHER FACTORS WOULD YOU CONSIDER IF YOU HAD TO MAKE THIS DECISION?

Best decision ever.

Forget percentages as a guild/rule when making decisions. 

It's generally recommended that you consult a CPA or Attorney familiar with these factors to help make a decision that fits your risk tolerance and overall investment goals.