The federal and CA state tax of 1 million cap gain (since it hits you in the same year), using online calculator it showed to be around $396K.   

I’m not 100% sure if I’m making a mistake in my calculations, but each time, the taxes take a surprisingly huge part of the cash flow.Any feedback/real-live experiences will be highly appreciated!

@Grayson GrzybowskiI recommend checking out the BRRRR calculator. https://www.biggerpockets.com/brrrr-calculatorThis will show you the key metrics before and after refinancing a property.

Here are some tips and insights to consider as you begin building your real estate portfolio:Options:Refinancing: If you have equity in your condo, consider refinancing to access funds for future investments.Investment Loans: Explore options like conventional loans for financing future rental properties.HELOC: Depending on your equity and financial situation, a Home Equity Line of Credit (HELOC) could provide flexible financing for down payments or renovations on new properties.Build a Financial Strategy:Budgeting: Create a detailed budget that includes mortgage payments, property taxes, insurance, and maintenance costs for your rental property.Cash Flow Analysis: Calculate expected rental income versus expenses to ensure positive cash flow.Emergency Fund: Set aside funds for unexpected repairs or vacancies.Research the Rental Market:Location: Choose rental properties in areas with strong rental demand and potential for appreciation.Tenant Profile: Understand the demographics and preferences of renters in your target market.Market Trends: Stay updated on rental market trends and local regulations affecting landlords.Property Management:Self-Management vs.

How is the capital gain calculated if I live in the larger unit for 2 yrs? 

Once you get to around $14k you're going to scale up to $37% but you can deduct half the expenses and depreciation which will reduce your taxable amount of income..again without knowing the income this is not possible to calculate.   

So, that rural home in PA, that had only couple comps to calculate ARV and ZERO interest from investors was a dead end deal.

If you need a spreadsheet to calculate your hours please let me know, I have one that we give to our clients I'm happy to share for free

(and yes, DSCR are personally guaranteed) The number of financed properties calculation includes:the number of one- to four-unit residential properties where the borrower is personally obligated on the mortgage(s), even if the monthly housing expense is excluded from the borrower’s DTI in accordance with B3-6-05, Monthly Debt Obligationsthe total number of properties financed (not the number of mortgages on the property nor the number of mortgages sold to Fannie Mae), with multiple unit properties (such as a two-unit) counting as one property;the borrower’s principal residence if it is financed; andthe cumulative total for all borrowers (though jointly financed properties are only counted once).

(IRS provides tables to calculate the amount(s) based on your life expectancy each year.)