I incorrectly thought that as long as you bought the property for the 6% cap rate value of $1,045,000 then you would get 7% coc roi.

This seems very incorrect to me as the property would be a capital asset with depreciation deductions taken over years, yet the agent insists that he is correct and that this is a common practice for RE pros.I trust the agent but just think he is ill-informed and/or missing further details regarding his proposal, though I am open to the possibility that I may be missing something as well.Can anyone shed any light to help bridge the gap here  ? 

@Dennis L.Hi Dennis, yeah, I think you’re using this incorrectly.  

Your understanding of capital gains treatment is incorrect so please talk to your accountant.

@Zach HeineUnfortunately, you will need to amend the prior year's return to include the 8582.the only thing I can think of 'potentially' is that the tax preparer incorrectly listed the income as 'non-passive' and took the losses when they shouldn't have.you may want to have a review of your tax returns done.

I think I’m asking a bit higher because the old tenant trashed this house and I did some work to it and added some new features that could get me a bit more in rent ie new sink, disposal, electrical panel, getting a garage door opener installed, new carpet throughout, fixed the incorrect washer connections downstairs etc. it hasn’t been an easy process but none of this still justifies what rent price house should be renting out.

Hopefully I'm not running the numbers incorrectly.

But using the term eviction is incorrect.

Apologies for incorrect interpretation and confusion there.

It’s possible I inputted the information incorrectly.