Including expenses, reserves, and management fees.

Every three or six months there's magically a seasoned 25% down plus needed PITI reserves, ready for the next purchase, sitting in a plain old boring Wells Fargo checking account without a lot of activity on those two months of bank statements I ask for.They write offers that end in 888, or want me to tweak their loan amount down so the base loan amount is $XXX,888.

This total is about 25%, so your 10% security margin seems low.At 5% down you would want a fairly healthy reserve fund for unexpected high cost maintenance or vacancies as you have very little equity available.As it is, you're catching a falling knife in Grand Prairie and it is certainly conceivable that property prices and rents could fall a further 5%+ over the next 12 months, putting you in negative equity and cash flow territory. 

Have those cash reserves ready so when we hit another bump you can clean up on those people that made poor decisions.

The current owner is shopping it around for 1.35m (7cap) and the proforma numbers are as followed: ANNUALIZED INCOMEActual MarketGross Potential Rent $191,639 Less: Vacancy ($5,749) Effective Gross Income $185,890 Less: Expenses ($91,497) Net Operating Income $94,393 Debt Service ($65,592) Net Cash Flow after Debt Service $28,801 Principal Reduction $17,403Total Return $46,204 ANNUALIZED EXPENSESActual MarketProperty Management Fee $9,582 Replacement Reserves $5,250 Building Insurance $6,712 Maintenance $12,560 Taxes - Real Estate $36,296 (37220 w/o exception)Utility - Electricity $2,453 Utility - Gas $12,369Utility - Water/Sewer $6,275 Total Expenses $91,497 Expenses Per RSF $8.39 Expenses Per Unit $4,357I did some additional digging and found that they offer Wi-Fi for the building (I talked to a rep and said providing service for a building that size should run 285 a month) and the trash was left off which runs about 285/month.

This will be the reserve I start saving every year/month, ear-marked for that expense.

Realtor and I confirmed my rehab costs and I made him an offer.  

The owner can leave money in a reserve account to be spent whenever repair/maintenance is needed.

Year 2, cash invested might be pulled from reserves (if you're doing it right) so you actually have an infinite COCR in year two.

Confirm how this matter is addressed/worded in your lease, but I doubt there is anything that says they must leave during an inspection or that it would be enforceable even if there was.