paying taxes on principal paydown

[Scott W.]

I have a rental that gets about $450/month in principal paydown.  the rent profit is about $200/month.

I kinda just discovered I will pay taxes on about $650/spread. is that right? of course, get to take depreciation deduction (paid back upon the sale).

if that's the case, it can make your cash flow even tighter. not liquid.

even the more reason to have reserves!