Buying an apt building

[Dustin Rand]

After many years of saving I think it's finally time to pull the trigger on a multi family building later this year.  But first, I'm hoping to get some help from the smart folks on this website.  

The apartment building I'm looking at is in the midwest where I have family.  Cap rates in the area go from anywhere to 7-8%.  

I have a handful of elementary questions to get myself started...

1.  How much can I afford?  400k saved and a 300k annual income.  I'm ok with stretching myself thin for the first year or two given my current income and ability to save.  I'm also ok with deploying all 100K as I have reserve cash on hand.  

2.   How much tax will I pay on my earnings throughout the year?  What if I put 100% of my profits back into the mortgage...would I still pay my normal taxes on those earnings?  

3.  What all is considered tax deductible throughout the year?  I assume less for me since I would be living in another state while owning this property?

4.  How much tax will I pay when/if I sell the property?

4.  What type of insurance do I need to carry and what would be the approximate monthly expense?  I assume this can vary depending on the building and the number of units?