I'm not sure how much 20% is, but lets say it's $20k you refinance and now make $250/ month you get a 15% return annually. 

Best term sheet from bank puts cash flow at about $190,000 annually for first five years.

Annual Expenses are projected for the property by multiplying (1) the actuals for the current year you obtain from the seller and (2) the project rate at which the expenses for the property will change year over year.Property Value can be obtained from your realtor or can calculate it based on the comps for the area. 

Wow, thank you, thank you, thank you @Natalie Kolodij @Caleb Heimsoth @Scott Wolf @Wayne Brooks@Bjorn Ahlblad and a very special thank you to @Dave Foster for answering in detail all my pesky questions.To answer some of your questions @Natalie Kolodij:I still have to calculate the exact amount of the renovation costs, but I am pretty sure it would be around 70K and some of has probably already been deducted from my taxes because I forgot to mention that I bought my property under a  sole proprietorship LLCI could buy a multi family out of state but I would need to hire a management companyI part time occupied part of the two family but not as my primary home just as a vacation homeThe 2 family was an investment propertyFor @Dave Foster:is it better to hire a 1031exchange intermediary from the area where the property that will be sold is, or could I work with you even if you are based in Florida?

In Texas the only annual costs for the LLC will be filing the tax return and franchise tax form if you use a CPA to do it for you.

Additionally, a new lease must be signed prior to the lease expiration in order to avoid higher month-to-month rental charges.Please email your decision on whether to renew and I will prepare and email a new lease for you to sign.I hope that you continue your residency with us, but if you do not wish to renew the lease, we can provide a copy of the move-out instructions.Finally, I plan to conduct a routine annual safety and maintenance inspection on XXXX.

That with an annual service and preventative maintenance contract will make it last its full life of 7-12 years.

Rising Labor Cost, increased government spending, and prolonged housing shortages are the main pressure points.Inflation is picking up and looks to increase over the next 18 monthsa mortgage rate jump from 4 to 4.5% and 60 bucks a month to a mortgagerent increases have exceeded 3% annually over the last 4 yearslow unemployment, rising house cost up 3% over the last yeari believe this is why there is such a demand for rentals now.

Rising labor costs, increased government spending, and prolonged housing shortages are the main pressure pointsinflation is picking up and looking to increase over the next 18 monthsA half percent mortgage is increased equals about $60 per month more in a mortgageRent increases have exceeded 3% annually over the last 4 yearslow unemployment, rising house costs up 3% over the last yearI believe this is why there is such a demand for rentals now.

@Rich CavanaghHi Rich,I think because a lot of people don't really do a projection of Rents and Expenses, they don't really know that if your Expenses INCREASE MORE than your RENT, you can still wind up Increasing your Cash Flow.Look at this example spreadsheet as an example:The Gross Rent is only increasing by 3% annually for 10 years.The Expenses are increasing by 5% per year for 10 years.BUT, because the Gross Rents are so much higher than the Expenses, about 5 times higher, a small increase in Gross Rents is larger than a "Larger Increase in Expenses."