The challenge for those has always been the difficulty in doing proper due diligence for these properties so you almost have to calculate the extra risk for surprises when evaluating I think.

Even if you start with just a few bucks in your reserve account, if you have bought properly in a good STR market, you should be able to save a good amount in cash reserves within your first few months of your STR being open.We haven't seen much of a softening in prices in my markets yet.

They had decided to deduct from their rent two months prior to closing because apparently the owner took too long (48 hours) to fix the water heater which was not properly heating.

For that to work, you would have to get the proper types of insurance and separate your business banking transactions from your personal banking transactions, at the very least.Also, when you fix a property to either flip or rent, the costs of fixing the property are generally capitalized and depreciated over many years. 

As you said there's no right answer, but I choose to aim for long term wealth over being debt free (as long as you manage any leverage you utilize properly!)

In addition to staying within the proper LTV, the bank is also going to need to see an adequate Debt Coverage Service Ratio (DCSR) of at least 1.25.  

Buy what you can afford as soon as you can afford it (assuming you do the proper research) and snowball that into more and bigger properties over time. 

When the 6 x 6 ft island was installed, it was not installed with the proper supports underneath so over time there is a downward slope to it too much to be fixed by using a leveling agent before installing the new flooring.

Be sure and provide a proper accounting and remainder of deposit, if any within 21 days. 

@Michael Doub without a SSN you can't screen properly and no reliable ID.