Things will break eventually. 5% should be safe depending on what your doing in the renovation.You might be able to get management at 5% if this is a really large property or you have a sizable portfolio.

Your cash is safely parked in your home.

Another weapon in your aresonel so to speak.Good luck 

I grew up poor as well and have equity available but havent identified anything that gets me more than my ROE safely and without a bunch of hassle.Make sure you have a good use for the funds.

I have a signed contract, but I included an addendum asking for a 30 day close, and I haven't received a signature from the seller, so I think I will reach out to the county and see what can be done to get the property removed from the auction just to be safe.

But better safe than sorry.

Also is there a safe market where $28k can go a long way?

I think it’s safe and reliable (at least in my Midwest market).

Is it safe to assume that the local government won't pass ordinances against short term rentals anytime soon?

Each city/county has their own zoning laws, so to be safe I would check with the city/county by calling or reading their local codes / zoning online during due diligence.