Can’t remember which one, but a former BP podcast guest came to this realization with a tenant of his and simply adjusted the date the rent was due (from the 1st to the 15th).

I can't see a reason for doing anything besides splitting the costs in accordance with your ownership percentage.Percentage to save for capex varies based on age, climate, style of building, etc.

That will allow me to do a boundary line adjustment later to increase the yard of the main house, which in turn increase it value.

@Greg Martin If the property is rental ready and you are putting 25% downpayment on a 1-4 unit property a private lender will offer 30 year products (fixed or adjustable).

B) It does look like time passed for section 121 exclusion.C) Gain is sales price less sales expenses less adjusted basis(purchase price + improvements).

If there are climate controlled units then you might have some HVAC maintenance costs, but that's about it.

If they keep hearing the same thing about the price and they need to sell eventually they will adjust the price.

If you can't get it to cashflow at those numbers, especially with the higher closing costs for 203k, then you have to adjust either the offer price or the rehab budget.

Lenor, I would suggest contacting a Public Adjuster in your area. 

In 2009 the average rent for 2 Br in San Francisco in today’s dollars (So adjusted for inflation) was ~$2500.