Contracts, inspections, how to get the property to appraise, how to qualify and interpret how good of a borrower the buyer is, how good their lender is etc.

Your message was definitely not interpreted as negative by any means.

The latter is much more riskier though.The above is how I interpret IRR. 

Not quite sure how you're interpreting and/or extrapolating information from my message that give you that impression.

@Kevin JorgensenI don't really have the time to run through all those numbers do you want to give me your interpretation of the numbers in the link you sent me.

CA takes $800/year for any entity 'doing business in CA' - a phrase that is aggressively and broadly interpreted by the Franchise Tax Board there.  

@Stephanie Irto - I am not sure how they are interpreting the payment due date.

believe me I have sat in front of a state regulator on similar issue with my attorney telling me we were right and the regulator saying NOPE.. guess who won. it was not me that one cost me 30k.Or I could have spent another 100k at administrative law court to argue against the state as to my lawyers interpretation vis a vi the state.the reality is if a regulator takes a swing at you .. not many folks are going to be able to stand up to it..

I'm not sure how to interpret that: Stable area where residents don't leave?

If I am interpreting your question correctly, money you borrow that has to be paid back is not taxable income and is not reported on your tax return as income.Capital improvements are not reported as expenses on your tax return and will not lower your cashflow.