And requires a good amount of Rehab to force equity appreciation.

At the end of the term a balloon payment for total amount of the property price is due.

The condos I have worked with have been around 5% due to condo fees and lower amount of rent.

That is a good amount of $ to rebuild 500 sq/ft of living space, 1 bath and a kitchen. 

So this was the amount that drops to the bottom line before taxes, which you mentioned in your earlier reply; along with Jacob, that this is actually the COCR calculation.

If the lien amount is paid with no funds going to buyer would that trigger capital gains for them?

Rent for $2,300moThere is a substantial amount of growth going on in Tucson right now, causing rapid appreciation.

If you look at the big things that could break in the next 5 years that wouldn't be due to natural causes like hail, you might want $10-$15k in an account to start out with that is available IN CASE something goes wrong before you have brought in a decent amount in monthly cashflow to build up a reserve account. 

I'm seeking tax tips for depreciation on an SFR that was purchased in 2014 as our private residence then converted to rental in 2016Details:Purchased in 2014loan was refinanced in 2015  We began depreciating in 2016 tax year, the year we began renting the home as landlordstax preparer for 2016 taxes entered basis amount based on 2015 assessment, not assessment from purchase year or for the 2016 assessmentunsure if bases was set correctly and whether to carry through that same basis or pull current year assessment for this and subsequent tax yearsTurbo Tax seems to be steering me towards using the purchase year assessment for the basis for depreciation.  

You can go either way of course, but if you were to leverage the same amount that you would put down as cash payments, you'd make a ton more.Then for Memphis....if you last bought in Memphis in 2009, that was a very different market than what it is now.