The second would be to spread out taxes instead getting hit all at once from Uncle Sam. 

Don't forget to save up for closing costs, property taxes, insurance, and any potential repairs that may be needed.Start by connecting with nearby lenders or mortgage brokers to evaluate your financial preparedness and investigate loan possibilities.

Transfer taxes, recordation taxes, lenders title insurance, owners title insurance, closing fees, lender fees, appraisal, survey, deed prep, recording fees, insurance, escrow 

Is there anything we need to do for taxes?

The book is saying open up multiple accounts for your business for the purposes of charitable giving, owner income, taxes, paying down bad debt, etc.

It’s in California and the tax basis is quite low.  

I'm about to seek legal council but wanted to run a quick check here about thoughts, tips, advices.

Also any good tips to negotiate the price? 

Is this a true 10% cap or is this what I refer to as the "realtor special" where taxes, insurance, water and a nominal maintenance budgetary number is included.

Hi Shree,Make sure you have a business privilege license and get a tax account number before you apply for the rental license.