Also, note that excessive front-loading may raise red flags with the IRS.The remaining profit can be distributed as bonuses, dividends, or retained within the business, but it's important to ensure that the total compensation (salary plus bonuses) is reasonable and justifiable based on the shareholder's contribution to the business.Remember that working with a tax professional or CPA who specializes in real estate and understands the specifics of your situation is crucial.

Once I have enough reserve funds built up, I will start rolling the excess cash flow into future deals, along with my real estate business income. 

Any excess losses may be carried forward to future years.Year-End Property Purchase and Depreciation:If you buy a property on December 31, you can typically claim depreciation for that year.

Excess Business losses for 2023Limitation of $578,000 for Joint filers$289,000 for other statuses

If that does not work, they can approach the specialty/excess market and get you a quote.

I was thinking of putting a clause in the lease simply stating that the 'tenant agrees to abide by the rules set forth by the property manager' or something to that effect (obviously have an attorney review).The rules would be guidelines similar to an HOA set of rules like "no loud music or excessively noisy pets, clean up pet waste, no parking on grass, no broken vehicles, etc"How do multifamily property managers handle these?

In a nutshell, I pay it down with my excess income until I have enough for a down payment (plus healthy reserves). 

If it's a really, really old building I have seen 65% annual costs due to excessive ongoing repairs.

San Diego is likely to have rent appreciation far in excess of the inflation rate.

I like the concept.Immediate cash flow to cover your note in the meantime, a health (but not excessive) amount as non refundable option consideration / earnest money / etc., and a six month window for the tenant buyer to actually get the financing worked out.