Income Taxes Impact on Rental Property Evaluation

[Paul Post]

Greetings,

I am using the BP Rental Calculator help me evaluate potential rental properties, and attempting to be as accurate as possible.  I like the fact that it accounts for so many potential expenses.  One big expense that I do not think is accounted for is income taxes.  How do you account for this expense when evaluating an income property?  Considering depreciation, and expenses, it may be a lower percentage than W2 income, but still a significant portion of the profit will go to state and federal taxes.  Do you use 10%, 15% more or less?  Do you consider income tax expenses as part of your cash flow evaluation when screen properties?

Thank you for your feedback,

Paul