I am still paying the tax amount that the previous owner was paying, so I know that I will have to cough up 4500 extra based on the selling price that I purchased it for.

Don't put it into your bank acct (hmmm... legal issue here, the state REQUIRES a bank acct for security deposits ... so, maybe check with your attorney first).Anyplace that processes pmts will have to report and every bank acct will do so, as well (two extra numbers on the 1099 you already get that shows interest/dividends).Maybe you can get around with cash apps - of course, most of those forbid commercial pmts, such as rent (and Zelle doesn't work with my business acct at all, only with personal accts .... which gets back to the bank will report it anyway) -- if you get caught, expect to get dunned for business charges (my Paypal is business, so I don't worry about using it and have trained tenants on how to use it if they don't want fees added to their rent pmts).

Lol -- the $123 difference is more than I thought but your purchase price is higher than I thought it would be from the title.With the payments sooo similar (4% difference), and the interest rate not too different, I'd save the 10k down payment (less the MI 3k pre-paid difference) and pay the extra monthly.

Better to overestimate for them, vs surprise you with an extra $2200 you didn't plan for.   

This is my first investment property.Proposed agreement:(1) Start at equity split 75% Me | 25% Mike Gives Mike an extra 5% equity from the start for his experience and the initial arrangements he made with agents and inspector(2) Stay at 75/25 split until 75% equity gives me at least the 80% initial amount I put in e.g.

---sigh---There's reasons PMC's don't like to run boarding houses.1) Most municipalities don't allow them2) They don't work in every area3) Owners won't pay enough to compensate for the extra tenant headachesEvery owner only wants to pay based upon everything going smoothly. 

If you increase the deposits, come up with a payment plan again realizing that many people are stretched thin and won't have extra to cover increased rent and more security deposit.How long have the tenants been there and what condition are their units in? 

Also, the little extras are worth it!  

LLC vesting is costly to register annually and file extra tax returns. 

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!