Now there may be some mitigating factors that could push some of those percentages I listed down a bit (or maybe there's a chance to increase the gross revenue by increasing rents), but overall this deal looks marginal at best to me. 

There is HVAC issues, a radon gas leak that needs a mitigation system, and a very broken up drive way that leads to a shed of a garage.

As is stated on many podcasts, knowledge, analysis, and education are great ways to mitigate risk.

To mitigate risk, you want acceptable leverage and liquidity.  58% leverage looks fine (add the new property and recalculate).  

@Kristopher HanksI agree that the rental strategy is a way to mitigate this risk.  

I use a desired ROI of 15% with a mimim of 15K profit.The rehab contingency depends on the level of risk in the construction project and your personal knowledge and ability to mitigate that risk.  

Now my model's not for everyone but I'll tell you this - I work in the 2nd space because of the higher yield and to mitigate my risk, not to lose money haha.

And start working your way out of debt, especially student loan, you don't want to be 35 with those sitting around and building some cash reserves to mitigate some of the risk.

Switching into multi family mitigates alot of problems that SFR have.

., and a Real Estate Investment Brokerage in case you ever decide to sell.By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.