If this a tax return onto itself, like a partnership llc, then yes you 'll probably have a $500 to $800 tax bill for it at end of year, depending on how good you keep track of records.

There seems to be a tendency to branch out when your business model fails to hit expectations.

ok here is my two cents I live and work in North Carolina i buy properties in all 100 counties in the state and wholesale deals to people I have purchased in both Fayetteville and in Jacksonville.Jacksonville is a tough market and it takes a long time to sell the homes if you are flipping I would imagine the same is true with rentals because if you're not able to sell them on retail the rental market will have a tendency to fallow. the only way I will buy in Jacksonville is if I get a really good deal.

Couple nuggets of basic info in the beginning, hard sell on vague principles, couple nuggets at end...

I recommend increasing the rate by 10% because tenants have a tendency to abuse utilities when they are included with rent.

My quick numbers using my terms above:Annual cash flow - $29,471Mortgage paydown in first year - $124kMortgage paydown at end of 5 years: - $685k.Total first year return = $153,471First year return on down payment of $1,000,000 = 15.3%This does not include the minimum $145k or so tax deduction you'd get for depreciation each year, or the huge tax deduction you'd get with the new bonus depreciation tax laws if you did a cost segregation.

Welcome to the Biggerpockets community @Tao Xu Feel free to ask around here in the forums, you can also check out the Network tab for nearby members to connect with. 

In addition, as was previously mentioned, things have a tendency to go wrong during projects like this which could result in delays.Regarding the current market in Sacramento, things have slowed a bit in the last couple months.

Re-did the numbers with the new tax rate and 10% for OPEX (combined $8,300), of course there was a drop but still numbers a bank would love to see.NOI= $36,600; DCR=2.62; BER=52.25%; Cap Rate= 11.03%; Loan Constant= 5.63%; Spread= 5.4%; ROI 27.3%; Actual Cash in Pocket at end of year= $17,478

We used to put in our lease if tenant fulfilled a two year lease we would refund them $600 at end of lease, that way if they did not finish lease they did not get rebate.We stopped doing this when I realized I would rather they go month to month after first lease, even good tenants can go bad.