CAPx reserves which is the moneys allocated to CAPx monthly do affect NOI and is an operating cost and there is a factor in overall calculations of DSCR 

If you have any money left over, which you should...you need to make allocations for repairs...this should probably be between 30% and 50% of your "take home".

There are 6 ways the IRS will accept for determining appreciable basis on a property- an arbitrary allocation isn't really one of them. 

After all, it's your hard earned money that you're investing, thus you should do what you need to feel confident in the investment you are allocating into. 

10k per month means you'll need 1.2 Million in equity earning 10%. 50k is a good start but keep getting that income consistent to continue setting aside for investment allocation.

I don't think they are collecting "rent" for it, but there is no way I can be sure.I do have clauses in my lease for:(1) No subletting, assignment of the lease or short term rental without Landlord's written permission.(2) Vehicle parking allocation shall not exceed one vehicle per bedroom.(3) Occasional overnight guests are permitted.

You also have nothing allocated for heat or electric, which is completely unrealistic to expect that the tenants are responsible for utilities just because they are separated.

I am not sure where you have allocated budget in terms of Painting / Other materials but I feel the budget you’ve allowed is a stretch given the size of the property and I feel you can stay under that and still replace those floors.However best to get a contractor to give it the once over as you discussed to get a quote together, looks like you are on the right track.

You can allocate your cash proceeds in any way you want towards your purchases. 

@Melody KushiI think you should keep the money in your 401k and work on your asset allocation between stocks and bonds.