In most single family investments, 50% of rent should be allocated to expenses (taxes, insurance, maintenance, capex, PM, vacancy, etc).

I'm guessing I allocate money once I see a receipt for the supplies, maybe a portion for the labor if he needs it. 

@Dave Rav I have asked several bankers that question and it comes down to allocation for their bank.

With that being said, when materials and labor went parabolic, the builder stopped the projects only to then find out from them months later that they were not going to lose more money and that we either had to wait until the contracted prices they allocated for labor and materials came down or eat those costs ourself…..we chose to wait.

But the values and type of property would be fine.And while the loan doesn't matter with a 1031, the proceeds for the down payment on your purchase can come from a 1031 in an SBA 504 loan and 7A loans but you need to make sure it's going to the purchase of the real estate and beware the allocation to FFE and working capital.

I was a self made millionaire at 34, I retired at 38, I have a hard time allocating all my own money let alone someone else's.  

My CPA has instructed me that the auto expenses (at least the proportion used for rental activities), overhead such as office supplies, software, tax preparation, and other items which occur to operate the rental properties (AS A WHOLE) are expensable on Schedule E relative to the activity (e.g. based on number of units per property) by "cost accounting or cost allocation". 

Seems low if this is the only payment for cleaning an STR.I'm assuming there is no expense allocated for marketing, etc because you are planning on using a rental management company.

My initial assumption is to allocate 30% of the projected income to taxes and 30% of the income towards operating expenses.

This would indicate likely cash flow, but still run a more accurate pro forma using an established calculator (BP has some that are OK, but make sure you allocate enough for maintenance/cap ex).Get an inspection.