The vacancy issue seems irrelevant, though, unless I am misunderstanding the logic.

Or did I misunderstand how the process is supposed to work?

The same for your funding sources, and so much more.Unless I am misunderstanding what your saying, it sounds like your saying a business plan is not a goal?

Sellers call me all the time with misunderstandings of what's going on with their property.

@Alex Brandt...hopefully I"m not misunderstanding your post, but from what I'm reading, your bank is taking into account the $30k into the acquisition costs, but they aren't counting it as part of your equity/down payment in the deal? 

Maybe I am misunderstanding your question?

No misunderstandings... work through all the unpleasant what ifs that could come up... and do that before you even enter into a partnership.

@Jason ScharfI believe Michael is misunderstanding what you are saying.He thinks you are saying 10 percent total for all of those.I believe what you are saying, is 10 percent repairs, 10 percent capex, 10 percent for vacancy, and 10 percent for management.If this is the case, you may be overestimating10 percent for vacancy is high for a portfolio in the current market, 5-6 percent is more reasonable currently, with 8 percent probably being a good long term number.10 percent for repairs and 10 percent for capex is probably a little heavy.Most likely this will work out of 7-8 percent for repairs a year, and 7-8 percent for capex.If you want to make it simple, as long as you aren't paying through the nose for taxes and insurance which is your only "known" expense when buying rental property.

I do not calculate expenses (insurance in this case) on the basis of rent collected simply because I'm going to be paying the insurance whether the unit is occupied or not.My expenses (tax, insurance, future CAPEX, advertising, etc.) is calculated on an annualized basis spread on a monthly expense amount to give me NET income/month on all of my properties.Maybe I'm misunderstanding something here.

HeyA few times Ive found myself @ a juncture where I have to decide whether to honor a NCND or completely seize an opportunity myself.Dont misunderstand- Its not my intention to burn bridges, but sometimes- even though youre ready to pay the toll- the tollgate is unattended and its like the bridge is really a wall bc you cant get anywhere with the person (bridge) youre trying to work with.Ive decided to risk it and seize the opportunity.I have a wholesale deal in KC, MO involving 12 properties to 1 buyer and my bridge has been Missing In Action for over 1 week.