Subtract from that monthly:Mortgage PITI $4700Cleaners $2000Utilities $1000Supplies $300So it costs me around $8k a month to run the place.

But after talking to a realtor and subtracting their commission I still aim to make 62k.

You forgot to subtract interest from your payment. 

Then just subtract the difference and present that to him.  

And it's the gain or loss when you sell that determines tax liability.Gain or loss is (generally) determined by subtracting your cost basis (what you paid for the home) by the sale price (what you receive for selling the home).

I am wondering what amount I should mention as "rent owed:option#1: $4500 as total "rent owed" option#2: $3500 (after subtracting last month rent that I got from tenant; assuming eviction date is the trial date) option#3: $2500 minus X% of 1000 (after subtracting last month rent and security deposit that I got from tenant.

Subtract that from 100% and you are left with 77%.

Often you'll see COC after debt service is subtracted. 

I'm assuming that, because they are in this financially distressed situation, they have not given more than 11.38 million dollars away in their life. 11.38 million dollars is the amount of money you can give away throughout your life without paying taxes on it.So, if they want to give you 100K, you'd first subtract 30K from the yearly amount, and then deduct 70K from THEIR lifetime gift exemption amount.

Just subtract another 3% of what YOU are going to sell it for (not the ARV) and now you have you MAO.