@John LeavelleYou are correct, I found my error.

In the last 18 months, my net worth increased 50% through RE with no new purchases,  Stock returns were rounding errors nominally even with good returns.  

Trying to build up reserves at a few hundred a month doesn't leave much room for error. 

I have been working with RealtyeVest (formerly IHT) and am moving in a different direction now due to some bookkeeping errors (minor) and poor communications.

@Shay KentMight be a clerical error.

And out of all the monthly reports, 2 have glaring errors which I need to clarify. 4) PM claims that tenant will bring up to the city authority and refuses to pay rent.

I asked what will happen to my security deposit if I pay September in full will I get it back as I stated that she could keep my security deposit for this months rent and pro-rate my September's rent from when I left.She said that she won't answer what would happen to my security deposit until she has received my rent for all of September, which you can't withhold that information and the lease, which does have a clerical error on what apartment we agreed to.She is threatening to go to legal proceedings if I don't get her the full months rent. 

Outline of the deal:Asking price: 495kOffer( after back and forths): 360k @ 5% interest only for 36 months seller financing, zero down (offer accepted)Annual Gross: Potential: 67,260 / Actual: 59,000NOI: 37,000Contract was drafted by realtor for me to sign today however I noticed a few errors and declined.  

if so do you have any advice for a rookie?

Would it be better to throw out the 50% rule and use the actual expense history that the owner has and maybe add in a percentage for error?