When evaluating a property, do you subtract Capex reserves from your operating cash flow when calculating cash on cash returns?

They confirmed the unit was exempt from rent control under the Costa-Hawkins Act.

Now I'm a newb so hopefully someone can confirm that I have learned this correctly.

If you guys are looking to rent it out then you would need to run a pro forma factoring in all of the operational expenses associated with the property against the rental income ( amortization, economic vacancy factor, insurance, property tax, reserves for capital expenditures and repairs, etc.) and see if it is actually a profitable cash flowing investment.

Make sure you get a second survey done to confirm that the first person did it correctly.

The bank had reservations about my using all my cash for the DP and offered me 100% financing, however, I would have to use my investment property as additional collateral. 

(my target is at least $500 net after all proper reserves per home)Do you see any major strategic flaw in this plan?

They will - should - want to see your contract to confirm you have equitable interest.

If so, how conservative are your assumptions for things like vacancy rate and maintenance reserves?

Fast forward to today, I've built up my cash reserves and moved to a more affordable part of Southern California (at least I think) where I'm honing on catching that first one.