Then once it became a rental the basis allocated to that unit would bump up by the amount of renovations and be depreciated. 

There are 7 or so ways to allocate building/land to determine your depreciation deduction- software won't analyze the various options. 

I realize you have put in $10k to $15K, but this would be allocated in your maintenance/cap ex budget that is already accounted for (hopefully you estimated conservatively).I have purchased a cash neutral RE. 

It's just your view of how to allocate capital.

Look into operating agreements, which spell out each of the partners responsibilities, liabilities, capital accounts, allocation of profits/losses, etc.Its recommended to seek legal guidance if you are going the partnership route.

The margins on just the management fee is wafer thin, and they will try to make money everywhere else.I just remembered you want to make sure you clarify with them if they allocate any salaries to your property in addition to the management fee.Christian 

Hello @Stefanie Bergmann,As far as Zillow leads, I would not recommend allocating any money here.

Most of the SFHs are also not close enough to downtown for me to reliably consistently get roommates and there are a lot of new apartment complexes being built so I have studio apartments to compete with. 3 bathrooms are also very rare, so if I was able to find something before it was finished and I had the option to allocate funds towards a 3rd bathroom as opposed to a deck or something, that would be ideal.

According to their formula it is the purchase price (415,000) - Acquisition amount ( 335,000 ) = 80,000.HML purchase closing costs 5000The max loan they will give me is 385,000 ( ARV 550,000 x .70 )50,000 of the 385,000 will be allocated out after closing for rehab costs.

@Ben MosierIt appears this cash is allocated as an opportunity fund for you.