If he also lives on the ranch then a certain % of that property could be allocated as his primary residence. 

So Mike has $120/month allocated.  

Hi Mike, I believe you could purchase a property on which you reside and also have an investment property, but you would have to do a reasonable allocation between the two and two separate sets of accounting.

So I think it’s about allocating some to stocks some to real estate some to whatever other businesses you want to invest in.

Lets look at some rough numbers.If you bought for 400k, and we allocate 25k to land.

Conduit type and asset allocations? 

Don't always look at what the bank account balance is, look at the books to see how much was allocated in the reserve.3-6 months reserves are usually for regular maintenance or not full-on big ticket items. 

Structure and allocation will be key to how you do it.  

I ran number multiple times but my estimation seems not great as I am not sure what percentage I should allocate monthly expenses as the recommandation is a range such as 5%~15%.

Pay cash for one and maximum leverage for the other (because you can allocate your proceeds any way you want).