The tenant guideline is 1/3 the tenant's gross qualifying income, which is subsidized and they may pay for higher rents not to exceed the FMR mean of comparable housing in that MSA.

Selling costs come off gain too, it’s your net not your gross selling price. 

I am an out of state investor, so I relied on my ex-property manager to do their job, however they were gross negligent.

Here's the 2007 table:http://www.irs.gov/formspubs/article/0,,id=164272,00.htmlThere are numerous deductions and allowances you can take that will reduce your "gross income" down to your "taxable income".Jon

. $4,000 gross rent. $4,000*75%=$3,000.

Is it important to have the cash reserves already saved up BEFORE you acquire a rental property, or is it okay to just set aside a percentage of your gross rent to fund the cash reserves after the investment property is acquired?

He said he is willing to get creative with the structure.Asking Price is $1.5M, current gross income is $80k which he claims he could "easily" get it to $100k, but he likes sticking with his long term tenants.

My buyout will be approx  one-fifth of the gross proceeds from Phase One.

Gross income 2.5X rent ($X,XXX/mo), no evictions, no violent crimes in 5 years, no late payments in the last 12 months."

An arms-length management fee is around 10% of gross rents.