Should Tenant neglect or fail to perform and observe any of the terms of this Lease, Owner/Owner’s Broker shall give Tenant written notice of the breach, delivered to Tenant personally or mailed by certified mail, requiring the Tenant to immediately remedy the breach or vacate the Premises on or before a date at least fifteen (15) days after date of the notice (except in the event the breach is for failure to pay rent in which case the five (5) day statutory notice shall apply).

Under NO CIRCUMSTANCES are you to show this to your LENDER. 

I love to do flips in our neighborhood and saw tons of potential in this neglected property.

But you're right, I neglected to factor in closing costs and other related fees.

@Wells MangrumYou'll want to work closely with your CPA or engage a CPA who will examine your facts and circumstances as donation of appreciated (FMV > adjusted basis) assets previously used in a trade or business is complex and not as straightforward as donation of cash or appreciated stock.Generally speaking it's advisable to hold the property for at least a year and you'll get no benefit for the portion of the unrealized gain attributable to Sec 1245 Recapture & Sec 1250 Unrecaptured Gain (Treas Reg §1.170A-4).Also very advisable to have a 'qualified appraisal' done on donations of real property to charitable organizations.

You can request the landlord put the tenants on your own written lease as a contingent of your offer, but UNDER NO CIRCUMSTANCES should this be a year long lease.

Without knowing additional information, it is likely that the landlord could (and probably would) keep the security deposit of the non-paying tenant in the circumstance you're describing.

I use 15% for maintenance and 8% for operations as numbers that have held pretty close, all though I have spent the last 10 years improving allot of these houses that were neglected from previous landlords so I am predicting that the maintenance budge might tick down slightly.

RE agent who brought us off market deal referred 2nd contractor who cut corners wherever possible, flooded basement due to neglect and walked off job.

So what circumstances should I consider when using the rule?