The income from rents was actually $723,191.65, but after subtracting out all operating expenses (property management, G&A, marketing, payroll, R&M, utilities, contract services, insurance, property taxes, and loan interest) the NET was $9,802 (but I guess it's really the net that matters, right?!).

You then choose the ways you want them to pay (Paypal, Google checkout, bank merchant account,offline payments, etc.) and all transactions are tracked on your personal account.Probably a bit more than you need, but starter reseller accounts are about $25/month---subtract whatever you pay for your site hosting (should be about $5 a month) and it's probably the same you'd pay for Freshbooks with more capabilities.

I might be inclined to do some market research and get some comps to see what that type of commercial is selling for per sqft so you have a good idea when you subtract repair costs and ect what its going to be worth to you to buy.

They will typically take 0.75 times the rent and subtract the PITI from that to determine what they will use to determine if you are making money or not.

Huggy Baird why did you subtract 15%?

However, once you consider the tax implications...She pays tax on the $10,000 in interest.Total additional cost to her = ~$2,500 (25%)I show a rental expense of $14,700, minus depreciation on the property ($100K after subtracting land value = $3,636 per year for 27.5 years) = $18,300 loss = tax savings of ~$4,575 (25%).Total cost = $15,500 + $2,500 - $3,675 = $17,025Thus, total savings over scenario 1 = $2,075The question is... what am I missing?

Once you have the final price, then I would multiply it by 70%, then subtract out repairs, then subtract out your profit.

You really need to estimate all repairs needed to bring the condition of the buildings up to where they'll support market rent and be stable over the next decade or so, and subtract that off of the price, as a bare starting point.

The mortgage (P&I part only if tax and insurance is escrowed), should not be subtracted when figuring the NOI.

For the new property, they typically take 75% of the rent and subtract the new PITI payment and handle that the same way.