You can then back into what needs to be reserved today and how much to hold back each month until you get there.As for rents, knowing the exact property would allow someone like @Remington Lyman to chime in on rent levels.  

Just to confirm, are you specifying on the 2-4 unit, either 4plex or townhomes?

In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

I haven't run the numbers yet, or even confirmed the $1.2 million estimated selling price, but I'm planning on calling him tonight to get more details to put into the analysis.

This is based on factors such as DTI, income, reserves, credit, etc.  

Any suggestions on how to confirm an ARV?

I had read that somewhere but wanted more confirmation with it!

Their reservation is a soft reservation, because they didn't want to pay the deposit to hold, which is non refundable.

For a 30 day notice, I'll use certified mail so I have confirmation of receipt For leases, disclosures, etc., I've sent them via DocuSign.

From cash reserves - buy and hold and leaving investment in the property.