I also think that she will be able to exclude half of the gains?  

I'm excluding all the additional numbers for simplicity sake.

Some trusts explicitly exclude the bond or surety, but that's moot in this case. 

You are buying a property for $100k and it has an NOI = $10k (rents minus expenses excluding Debt Service).

Let me give you a simple example: standard 20/80 conventional loan, monthly payments excluding maintenance is $3000.

So, exclude paper expenses like depreciation.  

*Nonresidential real property, residential rental property, and property placed in service and disposed of in the same year are excluded for purposes of the mid-quarter convention.

If you do, you will begin to see that you should not exclude ANY place.... whether your Goal is Cashflow, Appreciation or Both.I hope the readers of this post can be inspired to learn beyond simple rule of thumb calculations.Investor Llew

I'm thinking this probably excludes SFR - Quads but I could be wrong.Within each city on that chart, there are many surrounding towns where rent performance will vary dramatically.

When you post your link to your blog, website etc, you can choose to exclude that group from seeing the posts.