No HOA, ~450/mo insurance (expensive, high fire area), $400/mo other utilities. 3% maintenance reserve, 3% closing costs etc. 3.2% 30 year fixed 20% down mortgage...could likely shop for better terms with an accepted offer.I'm assuming 20-30% of home value depreciated in the first year via cost segregation study and purchase price of 1.55MM which is an "outlandish" bid well above asking I'm considering but am shocked at how the numbers are still working. 

This allows you to build a reserve to help pay for painting between turnovers.

For me, I would take that 50k and buy a 3-4 unit building in my county and cash flow after all expenses and reserves  about $1,000.00 per month.

You will also need reserves on top of the down payment in either situation!

Hey Matt, yea for any STR/Airbnb purchases, you're going to need at least 20-25% cash down plus loan fees, closing costs and some interest reserves in your account.

A $100k rehab project is a good size one, especially for the first time rehab, it can easily go over budget.Even if you do a smaller downpayment, expect the lender to require lots of reserves. 

So ensure you able to pay your mortgage at the higher level while putting aside reserves for capex, vacancy and repairs.Here is the other kicker as well.

I could do 5% cash down but they'd require me to keep 6 months worth of payments on reserve at all times.

to the landlord to confirm they 1) agree this is an existing issue and 2) they agree to resolve the issue prior to move in (be specific) and 3) if it arises again while you're a tenant, you won't be held accountable as the "cause" of the infestation. 

You want good cash reserves when you start real estate investing for the surprises that ALWAYS come when you least expect them.