Seller Financing - Start up business

[N/A N/A]

I'm looking to start up a new seller financing business. Please look at the figures below and see if this plan looks like a good deal.

I borrow $32,500 @ 12% for 15 yrs. and purchase a house.

I seller finance the house for $50,000 @11.25% for 15 yrs with $5,000 down.

After I recieve one year of timely payments from the purchaser I sell the note for 75%.

I will average 3 houses per month for a total of 36 per year.
I will have a positive monthly cash flow of $128.51 per house or $25,444.98 per year.

I will collect $180,000 in down payments for the year.

I will collect $1158.66 when I sell the notes.

For a total of $206,603.64

[i]How much should I anticipate paying in Capital Gains taxes?

Are there any tax breaks for investing in low-income single family dwellings?

I also anticipate having to foreclose on 1 out of 5 homes sold.

YOUR INPUT IS GREATLY APPRECITATED! :pup: [/i]