Subtracting the $4k in closing for the first purchase, the $2k in closing for the sell a year from now, and the $8.4k in selling fees from a conservative sale value of $140k leaves you with $125,600 minus your purchase price of $118k and you pocket about $8k.

My parents are working on closing a complicated conservation easement on the family ranch out of state. 

My wife and I went back and forth as to how much to borrow against it and I'm a conservative kind of guy and we settled on the $60K ($100K total mortgage).

We're pretty conservative, so we wanted to start with a place close to home where we could keep an eye on things.

But the high prices/taxes and my conservative estimates for the gamut of expenses and income don't allow anything to get close...

The market,  looking at comps,  seems to yield a conservative 500k for such a house.  

Also all of the appraisers seem very conservative when they look at something you have bought recently.You may get lucky and they give you the value you are looking for, I'm just saying don't count on it and don't be surprised when they return an appraisal of $110k...

Most conservative folks would say more than a year but there can always be circumstances where less may be acceptable or more required.You're absolutely right about the enormous tax bill generated by ordinary income coupled with self-employment tax, and HCA surcharge.  

NOI = $6,592Property tax $200Insurance $300 (This is not an exact quote but from reading expecting $200 - $300 -- Trying to stay conservative)HOA $540 (Although there was no HOA actually listed I went with similar neighborhoods HOA fees.)Maintenace $1,200 (The home looks updated so wasn't really sure how to estimate this.)3.CAP = .104.Cash Flow = $3,773.32This is based on a $51,920 @ 30 years @ 3.56%5.Cash on Hand Return29%If these numbers are a good indication of what to expect how do I do that thing where I get in with no money down?

This typically leads to an over conservative view for realtors.