I ask for closing costs, pre-paid property taxes, all kinds of stuff up to a couple % of PP. 

Lol -- the $123 difference is more than I thought but your purchase price is higher than I thought it would be from the title.With the payments sooo similar (4% difference), and the interest rate not too different, I'd save the 10k down payment (less the MI 3k pre-paid difference) and pay the extra monthly.

@Caroline Gerardo I should clarify that’s including escrows and pre-paids.

@Joseph Lyons the prepaid are common, can usually get in writing they won’t charge if you redo with them.

I would debit tax expense (increase an expense) and credit property tax payable (increase a liability). 

Payments made by credit/debit card and third party payment networks like PayPal, Venmo, etc are not subject to the 1099-MISC reporting requirements. 

Let your imagination run as to what this could pay for; repairs, capital improvements, pre-paids, etc., but also know that any sort of rebate requested must fully disclosed, appear on closing disclosures, be approved by the listing agent, their employing broker, and most of all, by your lender. 

I put 10% down and prepaid all of my PMI at the time of closing through a conventional 30 year mortgage.

As far as prepaid rent (first and last) and security deposit that's one third of a month's total rent.

I'd be requiring a year pre-paid (non-refundable) of the insurance, one year term leases, non-renewable without another year of insurance.... eventually the tenant gets eaten up in fees and has no security deposit coming back at the end.