My main account has all the rents deposited and all expenses deducted such as mortgages, some utilities and an electronic payment app connected to the account to pay contractors.

It's crucial to consult with a tax professional who understands the nuances of your situation to determine the most appropriate and cost-effective method for your tax filings.

Yes, you can deduct related expenses including gas, loan interest, insurance, etc. using the actual vehicle expenses method to deduct auto expenses for your rental or other businesses. 

You are correct, local banks would go in and sit with them and go through rates and financing and understanding the payment.

Were I am getting disappointed is the lenders for Commercial say you need 20% down payment (I don't have that) and when I tell them if I could have Seller finance in the same deal, was told no.

Do they use a servicing company to make the payments directly to the , or do they make payments directly to the seller and hope they pass them on to the lender?

My net rental income was $300 to $500 a month, not enough to cover the mortgage payment (PITI) so I'm negative on what was supposed to cash flow on paper.

I see posts on CA insurance that appear to be ignorant to both the past method used to set insurance prices as well as the approach the current commissioner is advocating.The current policy had insurers set rates based on past losses.  

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

So my inclination is to compromise her 50% request payment to 25% as stated by Mark and Martin.