Subtract that number from your anticipated net sale and that would be your taxable gain.Here's a couple options1.

I figure the prospective tenant "should" be on their best behavior during initial interactions with me (just like a job interview). 

Just wondering what your level of interaction is with yours though and what they charge for that interaction.

I am a fairly new landlord and don't have a lot of experience with tenant interactions.

Accounting for anticipated capex and increases if already known.Analyzing tends to be a mix of analytical data and finesse with the numbers based on the property, if that makes sense.Anyhow, reach out if I can help.Mike

Welcome to BP I've learned a ton just from following and interacting on the forums.

Before you have any further interaction with tenants you must learn all the regulations and keep them with you.  

Inform the prospective tenant that due to the amount of people your going to anticipate a higher water bill and would have to increase the rent ( what ever you deem reasonable) .

It's irrational to lend money out for a lower interest rate than the anticipated ROI from parking it in a Wall Street index fund. 

Good news is, deal is done, and was better than anticipated.