Nervous about no reserve cash in case of damages/accidents.OR2) Invest out of area, in a more affordable market, where I can afford a 20% down payment and hire agents, contractors, and managers to handle the rehab, leasing, management?

My concern is that if the tenants move out but damage the property, what is the recourse?

I bought a hurricane damaged home here in Panama City with a low-down, seller financed note and leveraged a partnership for the rehab costs.

@Thomas Grove I think with Memphis you almost need to break it down by neighborhood and even blocks instead of just a zip code. 

My neighbors are cool and the other houses on my block are vacation rentals so it kinda works out.

How damaged does a property need for a bank to turn down a loan?

Philly can change quickly block by block.

Purchase price: $185,000 Cash invested: $36,000 Block of 6 row homes purchased occupied, but neglected.

Then block out all the noise. 

I would hate to have this result in requiring AC units that tenants won't use because they pay electric blocking the window and pushing the temperature over the limit.