HUD Homes are vacant so I accessed it during my inspection period which allowed me to take measurements, order appliances and determine the scope of rehab so work could begin on closing day.

They got back to me asking for the measurements of the fridge and a few days later, without anyone coming on site, they said they were going to replace it.

The cash on cash return is a simplistic measure of the performance of a potential investment property. 

Yield curve, or whatever measurement is being used, no one knows when a market will correct.

I'm not a lawyer by any means but I'm unsure of how they can threaten a lawsuit if you have responded to the complaints, that frankly, aren't your problem (have nothing to do with safety of building or all systems working). 

I would check local fire safety ordinances the tenant may be putting the rest of the building in danger and breaking fire codes using unvented propane heaters in an apartment building. 

Let's say I want to ask for a bit more than I am anticipating I need as a safety net, just in case something does come along for more than what I anticipate spending on my first investment property.

Keep it as a safety net for yourself to make up for the added risk you are taking on with a less than stellar credit score.Good Luck!!

NOTE: It's the rare jurisdiction that will permit 3 people to occupy a 1-bedroom unit--it's an occupancy/health/safety issue, so check with your local zoning or housing department. 

I'm just looking for a lever.Would you consider such a measure, or would you come at it from a different angle.