Throw it in a separate account, allocate the 6 cents of interest each month and move on. 

It does not have to be just one property and there is no requirement to allocate the cash in a certain way.  

Consequently, there's a major asset class that isn't competitive for investment allocation.

Also, they allocate $12,867.00 (8%) for Reserves. 30% seems very high to me, but I'd like to get your feedback.

You can also use replacement cost method, agreed-upon valuations, and comparable land sales (and these methods may allow you to allocate more to building), but whatever you use has to be "reasonable" (vague, I know).

Once the repairs / cleaning is done, an allocation is made for the 'extra-ordinary' stuff due to the Tenant.

You can allocate a percentage of your home to be treated as a rental and split the common expenses based on that allocation-except for when you make repairs directly to those rented rooms (paint, etc) as those can be 100% expensed.

Additionally, if your marginal tax bracket rate is 15% or lower, then the tax on the sale of your property will be lower as well.I am assuming that your depreciation basis was determined by the portion of your purchase price that was allocated to the dwelling structure.  

Real Estate is physical and the stock market is virtual so I have dramatically shifted my "retirement allocation" over to both Crowdstreet and RealCrowd and away from the currently over inflated/hyped stock market.

Allocate % based on your age into stock / bond fund.