Assuming you've already taken into account all of the expenses and losses that can happen (e.g. vacancy, repairs, capex) and that you've conservatively estimated them, I like to see over $200/month. 

The lender shouldn't have a problem with that, so I'm at a loss on that one.Get in touch with a local structural engineer familiar with old houses in the area like the one in question. 

You have a little net taxes early on - due to interest payment, but towards the end you get a break based on your capital loss.

Ultimately, the investor makes the decision based on their business model and tolerance for risk.Replacement Cost & Actual Cash Value loss settlement provisions and VERY importantly, how Co-Insurance affects your coverage are also two other pertinent things to consider when looking at coverage.One problem I will call out though is that so many of us are in such a hurry these days and professionals are less professional in many industries these days and are less about the relationship and more about churning numbers. 

That one might have a blockage from minerals, sediment etc and might not longer be effective and it appears to be a loss of water pressure when its really just a blocked up shower head. 

My accountant is concerned that I will be generating active income in the property management entity which will be taxed at a higher rate and not offset by passive losses generated by property I own personally or in another LLC.

As you state, over a long period of time, it will become less of an issue simply as a result of the loss of older housing stock or eventual abatement of lead based paint hazards over an extended period of time.  

After which they will execute another transaction to release the funds into the landlord's account, which can clear in 0-2 banking days depending on the receiving institution's policies.By charging the fee to accept the additional reversal exposure, they hope to cover their losses through any reversal after they have paid out.  

You have to evaluate the property, calculate expenses, and then see what the net income or net loss would be.

Don't tap this account for anything other than emergencies (loss of job, medical, etc... not for new cars) and refill it as soon as you can once tapped.  3) Pay off *all* your debt.