After rehabbing costs (you will be inspected by a HUD inspector, and have to meet minimum living standards, which are not that minimum), assuming a 10% vacancy rate (not really a vacancy rate, but more like a "tenant not paying full rent" rate), plus associated costs, my CAP was in the red. 

.), it means maintaining adequate cash reserves (to handle unforseen CapEx, vacancy, etc.).

When I ran the numbers I started with 180000 as the price, 4.2% interest, 4600 a year taxes, fees out of pocket, 30 years, 2200 (potential rent when we move out in 3 years or less), utilities paid by tenants, I didn't know what to do for insurance so I put our current insurance (rental property and our current renters insurance) 72, with a management coverage of 10% with repairs at 10%, vacancy at 5%, capex at 10% and no future expectations the cash flow came out to be 160 a month and a 14.31% ROI.

I know I definitely need to peruse some of the other forums, however I'm assuming having three months mortgage set aside to cover tenant vacancy would be somewhat adequate( I know it's probably not ideal, but I could maintain the additional mortgage short term on my salary if I needed to)? 

Current vacancy rates are below 10% in this market.11.

Vacancy, maintenance, Capex and Prop Mgt are often overlooked but are a crucial part of the monthly expenses, especially when wanting to hold and investment property.

I can understand on one hand as it ensures the best possible showings of the place, but this will also ensure that my vacancy rate will always be higher than it would be if we showed the apartment prior to move-out & placed a new tenant within days of the move out.

Vacancies, reconditioning, maintenance, inspections, legal costs, etc.They don't understand the importance of doing things correctly and providing a quality property.

When you run your expenses on properties be sure you're accounting for vacancy, accounting, advertising, cleaning, insurance, lawn care/snow removal, legal, management, maintenance/repairs, cap exp., taxes, utilities (water/sewer, electric, gas, oil, trash, etc).  

so this transition is an opportunity to build your cash fund.. only 1 or 2 days of vacancy AND 0 bad tenants can be tolerated!!.