RE is always local, but the rehab deals in my area a nearly impossible to find unless I'd lower my margin...I generally use the 70% rule. 

If you have a lunch meeting with someone then it will be 50% off on your personal  taxes. 

Is there a rule of thumb for setting a reserve amount? 

Also one of the flippers I had the homeowner hold the property and kick in 50% of the repair costs and we will split profits 50/50.

My rule of thumb for a class D is that you need to make your money completely back on the property in 2-5 years. 

I know about the 70% rule and realize that there will be minor repairs.

With a basis of $138k and only $1,000 monthly rent, your well below the 1% rule (a basic back-of-the-envelope calculation used by investors to quickly determine a go or no-go decision). 

Greatly appreciated and hope I'm not bending any rules by asking.   

First three rules of real estate investing: location, location, location. + Location: the only thing about a house you can't change.

It may take a few years.  2 turnkey properties I purchased in 2014 appreciated 50% over the last 4 years.