Having said this I must explain that I am jaded and tend not to believe people have the best of intentions.

I'm guessing you are going to end up closer to the $300/month than $700/month cash flow, but my eyes could be very jaded by my low income focus.

Needless to say their first year of experience as "unexpected landlords" has jaded them (renter wrecked the place and skipped out leaving them with 2 weeks of work and $5000 worth of repairs).They owe 97K on the house, payments are $760/mo and were getting $1075/mo in rent.

@Jade Davis  I am not sure I understand what you are looking for.

@Jade Davis thank you for the valuable information!

@Jade Davis  I've heard the exact opposite.  

Originally posted by @Jade Davis:Wow some of you peeps are MEAN!

@Jade Davis 

I have read and listened to tons of materials here at BiggerPockets (a bit jaded now since i have been inactive), but still some doubts linger.Here is what I am thinking.1) Follow 1% rule for potential rent and property cost.

Jade, welcome to Bigger Pockets and congratulations on putting yourself out there with your first post"I would take prorated rents and deposits as a credit to down payment,"Most states require that deposits be held in a separate account, so even if you received the deposits as a credit at closing, immediately thereafter you'd need to put the money in a bank account and not touch it, so you would not be able to use it as part of your down payment.