Security deposits, cash reserves, syndication payouts, etc.

[Brad Simmons]

Several related questions...

Are security deposits considered income when determining NOI? Are they expenses when they are returned? When you buy a property, should the seller turn over those deposits in cash after the sale?

When buying a property, and I'm thinking specifically of a syndication deal, do you raise your cash reserves from investors? I'm thinking of cash that goes above and beyond any known repairs or improvements.

When doing quarterly cashflow payouts for a syndication deal, how do you determine what is "cashflow" at the end of the quarter? You need to be setting aside cash for CapEx so do you just have an established percentage that gets set aside for that?