Purchase price: $125,000 (assuming offer is accepted)Down payment: $25,000 (20%)Financing: 30 yr @ 5% = $540 /moInitial rehab: $5,000Closing cost: $2,0001st yr Insurance: $1440Taxes: $120 /moInsurance: $120 /moVacancy: $150 /mo (8%)Maint/Cap-Ex: $270 /mo (15%)TOTAL EXPENSES: $1200Rent: $450 /unitTOTAL INCOME: $1800Cashflow: $600 /moCash on Cash: 21.5%Here is a link to the listing if it may provide more insight:Quadplex ListingThe unit is located on a decent street in a very small town (<10,000).

Assuming there are no looming big ticket items that I am aware of, would you/should I continue to save for reserves, or just maintain that reserve and replenish as expenses arise?

I agree that insurance cost is likely to be a bigger factor as far as expense goes, although that has already been the case, at least in the areas of central Florida I'm aware of.  

I currently live in SF, so I understand the difficulty of finding deals in expensive markets. 

Good that it's not a more expensive mistake.

or is it just too expensive?

If it is just the business and not buying a building or the land beneath it then it is not generally a real estate licensed activity.You need to check for each state what is or is not required.You could go on a site like Rocket Lawyer etc. and for a nominal fee ask the question.In commercial real estate transactions you can generally have consulting and other fees on the HUD-1 as RESPA does not typically apply.To look for more businesses you could look at bizbuysell.com  Sellers typically want 3 times gross profit earnings so if 100k a year after expenses they want 300,000.

By forming an LLC it is slightly easier to account for expenses to offset against your income.

They would then have zero income and have property expenses.

I earn more than average (around here) and did not yet buy my own house because I felt it was too expensive and just not worth it, especially as I do not have my own family yet.As such, at the price of one house here, I can buy even two villas, or a few smaller studios over there.