That avoids misunderstandings later over the terms of the lease.Be sure you get credit for any partial months rents and security deposits on the settlement statement.

Anne:  you may have a misunderstanding of the how a California UD filing works.  

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.