Either way, be sure to provide your notice of intent to withhold or refund within the allotted time.   

Terms can vary from 1yr I/O to 30yr fixed, some will allot funds to complete restoration/ home improvements. 

If a couple of tenants move and you have to paint the units and do some other minor repairs, you're only alloting yourself $500 for ALL repairs per year.

Our leases include a portion dictating how often "guests" are allowed to stay and anything over the time allotted they must be ran through the system and put on the lease.

Personally I would allot the money to swap those furnaces immediately so I could avoid the headache of dealing with a down furnace a/c unit in the middle of a snow storm. 

@Daniel DietzThanks Dan,My kids are very young so I have been using the gift allotments to put some money into their 529 college accounts.

@Jason RuelloAs said below, 5-10% of monthly rent should be allotted towards TRR (treatments, repairs, replacements).To get a more accurate number or capital expenditures, you can examine the age and state of major items of the house such as the roof, HVAC, water heater, etc.

Between the lease, lead pamphlets, lead disclosure, move in conditions checklist, I feel like I have allot of papers here.

@Sarah BridgesThe 1% rule is really just a quick sorting method if you have allot of options. it's not an end all be all for REI.If I was relocating and needed to find a deal I would try to understand the market first.

Assuming you guys are using conventional lending, if all three of you were on the loan, then this one property takes up a slot in each of your allotments for 10 loans.