You start depreciating $120k next week.Disclaimer: my example does not consider a few important issues, like closing and holding costs, financing, land allocation, etc.

These can be allocated on the depreciation schedule, and depreciated at a faster rate.

Search the forum for recommendations on how to allocate the purchase price.What costs can you flat out expense, and what have to be added to the property and depreciated?

Heat Map of highest allocation of distressed properties. 

It is also good to know the cost of repairs in advance and again have these cost allocated in a reserve account . 7.

And you can allocate your proceeds in any way you choose.

So RUBS will not cut down total consumption IMHO.With RUBS, allocation is based more or less on square footage.

You can allocate them in any manner you choose to any properties you are purchasing.That your describing is perfectly fine. 

So if you are purchasing a house with land, you typically would try to allocate more of the price to the house, as you don't take depreciation on land.If your goal is maximum taxable writeoffs and you have a number of other properties, you may want to look into cost segregation (but it won't be worth it if you only have this property).Keep in mind that when you sell the property, you'll have to pay tax on the depreciation (usually a 25% rate).Be sure to chat with a CPA about allocating the purchase price in a sale, as you need to follow one of the multiple acceptable ways to allocate.Also, depending on how the rest of your portfolio looks and your timetable for holding, being less aggressive in allocating the purchase to high depreciation items may work out better. 

I do not want to allocate/spend any of those funds until the lease progresses - pay myself rent month by month from that account, in case of something happening or eviction etc.