Hi Daisja,To explain thing in more extremely technical and complicated, here's the good very savvy article from SeekingAlpha why we should have mortgage :https://seekingalpha.com/artic...... when rates are low, attractive bonds at higher coupons get pre-paid early.

Au contraire mon frèrehttps://independentbanker.org/...Suspicious Activity Reports (SARs)"Debit cards, credit cards, residential mortgages, prepaid access and home equity lines of credit topped the categories for which SARs were filed in each month of Q1 2018, and they totaled 78,533 of the reports filed.On its face, the requirement to file a SAR appears simple:1.

There are inexpensive pre-paid legal plans that provide this service at no charge beyond the monthly enrollment fee.

For example, they can buy a prepaid Mastercard or Visa (gift card) and pay on-line that way from any library.  

@Leo Harper If you plan to live in one unit for a year you can go FHA, ask for prepaid from seller; arrange to close to the beginning of month when rents are collected so you would get a larger proration; make sure security deposit are transferred to you along with any contingency money owed to tenants; if you are licensed real estate agent on your own deal you get a cut of commission etc.

Before I do my taxes, I have a unit in which one of the tenants (a college student, parent paying) prepaid their rent for the first 6 months of 2016 in late December.

On the next June 1st, the deposit becomes non-refundable by agreement and the amount is goes to deposits earned and may be treated as rents received, a prepaid rent on a cash basis.

Is it correct of me to not add Prepaids and Reserves into the Proforma so that it affects Initial Cash Investment?

MAYBE at 25-50% additional rent, the largest security deposit and most prepaid rent allowed in yoru market, with a personal guarantee from anyone associated with the corporation.

In your above scenario you go with delayed financing but you would be limted to what you purchased the property for plus closing costs/pre-paids or 75% loan to value what ever is lower.