This amount will need to be then adjusted by the building value. 

Adjust percentages to how you feel.

You can then adjust expenses based on a few factors:  does LL pay utilities or tenants? 

Tax adjustments, water adjustments, oil adjustments (if applicable), attorney fees (if attorney state), transfer tax (if state requires), concessions can happen sometimes.

I would generally give them 30-60 days notice regarding new rent increase so that the tenants can adjust to the rent hike.

They were willing to lend that way but at a commercial rate = 5.25% adjustable with a 5 yr balloon.  

If you're already in negotiations with the 1st, ask them how much they will allocate to the 2nd mortgage then adjust your HUD accordingly and get everything submitted to the 2nd for review.

It's a way to adjust to make up for the extra work that I do without changing ownership percentages.

However, if your property is a SFR, it is probably a little on the high-side.There is typically an add-on to the rate adjustments for multi-family properties.Hope this helps,

Are these both already factored into the adjusted cost basis of the replacement property?