But i would start with $100,000 in reserves slong with the fact of having credit set up for you (eventually you will not be able to get a loan because of all the loans under you name it is good to have people ready to let you use their credit) so that you can get thingd done faster!

Maintenance I include landscaping, roof, issues that spring up during the year. 10% is good, also I save a portion of the income for a reserve to fix anything that occurs during the year.2) Depending on the property management company/manager.

Well you can always do a few wholesale deals and build up some cash reserves before you jump in to rehabbing...just locate some really good deals put them under contract...and sell your right to buy to a rehabber..this is what i am doing!

I actually found that an REO was purchased for $60k, but can't find that it's listed anywhere with a realtor.I called to confirm that it was still available (got the name and address from the tax website, and googled it) and it was.

Having started a few companies myself I can tell you that however much ready cash you think you'll need---ISN'T ENOUGH.Therefor I would vote to keep you cash reserves in CASH.

The Federal Reserve cut the Federal Funds Rate to 4.50%See story:http://biz.yahoo.com/ap/071031/fed_interest_rates.html?.

Not sure how much of an inspection was actually done.Know the market value and confirm it from other sources.

I have read, but want to confirm that I can report forgiven rent payments from a tenant as income to the IRS.

With virtually no real cash flow and only 3 properties, you should probably have $5K to $10K in reserves.

Can you confirm the property is in fact in Cali?