Some of them have excellent incentive/rebate programs on insulation, water conservation, ACs, etc.

What I wrote above does not create an attorney/client relationship between us.

What I wrote above does not create an attorney/client relationship between us.

., pay them and enter into a written agreement to establish an attorney-client relationship.

@Brian WheelerThere is a 99% chance this post gets removed, but my firm provides some free excel models that might be able to help you out.

Also thinking about building a long term relationship with the small community bank.

I = RVI have an excellent spreadsheet that you can use that will calculate all these numbers for you.

Likewise, your annual or quarterly or whatever property tax payment is expensed when paid, if you're on the the cash basis (which most people are) but you've already counted that in the reserves.Here is what your accounting software probably shows in the month that you paid the property taxes.Rental Income - $1000.00Expenses:Insurance:               30.00Property Mgmt:   100.00Mortgage Int:        350.00Property Tax:        700.00   Total Expenses:    1180.00Net Loss                   180.00So what you want to do is dump this report into excel in order to reconcile it back to your cash flow.Start with your Net Loss Number and then make adjustments until you reach your cash flow:Net Loss:        180.00Add Expenses Paid from Reserves:Property Taxes:  700.00Subtract Other Cash PaymentsMortgage Principal: $150.00Amount transferred to reserves:  $80.00Net Cash Flow:  $290.00Cash Flow is a completely separate calculation than Profit and Loss. 

This would be my first deal, and I think it would be an excellent chance at a wholesale.  

I would like to have a good relationship with my tenant but at the same time I don't want to think they can take advantage...has anyone come across a similar situation and what did you do?