Most likely this will be 8 or 10% of rent, but the only way to find out for sure is to talk to a few local PMs.You may want to check the local landlord laws for billing the tenants back for water/sewer/gas that you pay for the building.

As for the gas and water, check your local laws and market conditions. 

Landlords advising to charge a hourly rate that do not have codes authorising this charge may be challenged by a tennat and in a court of law will likely have the charges denied.

And I actually don't feel comfortable abusing the law for free rent from a person in the flesh. 

Depends on your state laws.

And if you do close and have a gain and it's your primary home I'm sure you're aware of both the $500K married couple exclusion to pay no taxes and/or the new tax laws that lowered income taxes.

@Rasheen Johnson Having an attorney opinion based on your state law is always the best choice to ensure everything is kosher.

Good afternoon,A little confused on the Kentucky law for security deposit.

Those rules are called your state laws.

As real estate investors, you need a tax professional who is on it and knows all about the tax laws surrounding real estate.