For a first time investor, unless you are buying turnkey (which would have a tenant placed already) you would likely do better acquiring a vacant property so you can choose the tenant or at least choose a property manager who will use good screening practices to choose a tenant. 

Only justification I see for the gradual increase is if it is required by rent control laws.

Establish a relationship with a Termite / Pest Control Company, and have them do an inspection every 12 -18 months. 

well what I would do is tell the seller the house needs 45k.. and since he holds the first you are improving his collateral therefore its safe for him to take a smaller down payment.Maybe offer to escrow the rehab funds so that if you say your going to rehab but don't he can go in and grab his 25k that is not coming to him in the form of down paymentlet him be in control of that 25k in some manner.. that may work.Its just like when I tie up development ground if I have a very cautious seller..

For instance, the cost to prepare a return for a single individual will be different than for a married individual with children, all else being equal.Other drivers are the cost of living where your CPA is located (CA CPAs are more expensive than AL CPAs), their practice's overhead, and the CPA's experience and knowledge level.I don't know of any practitioner who wouldn't charge for more states. 

You will want to hire a pest control company for the WDO inspection, and if the home is vacant it's not really an issue, but if it's occupied, it's a nuisance to schedule inspections at different times to inconvenience the seller. 

He wants total control of the neighborhood and is willing to cooperate with a delayed closing until I find a suitable replacement.I would like to increase my rental units and would like to use the proceeds as the down-payment on a larger mortgage if possible.The gain/depreciation question I will need to get some advice on from the accountant.

That is based on the following assumptions:Rent: In-place rents are at marketVacancy rate: 10%Expense ratio: 50%Cap rate: 6.5%Loan Interest Rate: 5.25%Debt service coverage ratio: 1.2Down Payment: 20%Best practice would be to ask brokers for cap rates and market rents to support some of your assumptions. 

I would want full control over what subs are used.

Can anyone with more practical experience provide an opinion?