I put aside 12% for maintenance and CapEx reserves, but this also depends somewhat on the age of the property and whether or not you rehab it prior to renting it.

I recently bought a duplex with long term tenants and part of my purchase agreement was that they would renew their lease for one year prior to close.  

@Lan Huynh = agree with above. tenant is prior owner responsibility.

All major cities in Texas see highest appreciation ever in last few years... still prices are very low compare to coasts.

Tell them that you can work with them on breaking the lease and not losing any deposits if they in return help you with leaving the home ready to rent and allowing you to have limited showings prior to them leaving.Regular tenants would generally be very accommodating given they are being helped, so I would expect friends to be the same.

Prices should be comparable, if not less to Zion area. 

You can ask for seller paid closing costs, but of course they will look at their Net when comparing to other bids.

The tenant is in the lower paying $800/MTM and it would be nice to count on that initial money but I was hoping for $900/mo.Built in 1926 which is normal for the area.I didn't factor utilities in too heavily because I'm trying to compare it to what I currently pay.

Goals -Refinance soon-  I planned on going 15yr with the lowest interest rates I can get with a credit rating about 740- Yes I feel more comfortable getting stuff paid off quickly rather then having lots of 30yr loans-Build 20% equity with improvements prior to refinance-No more PMI !

The asking price is $167,000 (Comparable to those in the neighborhood).