Of course, a great vacation rental house is probably not going to rent for annual at the best rates.2.

Those are both annualized numbers.

They are intentionally buying minimum returns.With a cash opportunity value of 10%, and mortgage rates at 4%, pay down investors are losing 6% on every dollar of dead equity annually. 

The requirements of the safe harbor election for small taxpayers are: Average annual gross receipts of $10 million or less; andOwns or leases building property with an unadjusted basis of less than $1 million or less; andThe total amount paid during the taxable year for repairs, maintenance, improvements, or similar activities performed on such building property doesn't exceed the lesser of- Two percent of the unadjusted basis of the eligible building property; or$10,000 (for questions about how to calculate the unadjusted basis, refer to "Figuring the Unadjusted Basis of Your Property" in Publication 946You make the election to use the safe harbor for each taxable year in which qualifying amounts are incurred.

The forecast result is a projection for annual total sales increase (total 2018 existing-home sales vs. 2017) and annual median price increase (2018 median existing-home sales price vs. 2017).

We earn about $55K in rental income annually.

In order to carry a license we have to train, take classes, pass an exam, and do continuing education on an annual basis in order to maintain the license so we can originate.

I can assure you when an apartment complex runs their annual financial report that they include ALL expenses and received income.

In your calculation you stated that 10% equals $1200, did you mean $120 or was the $1200 an annual number? 

Again, a few extra points annually, but many are interest only for 12-24 months while you stabilize and lease-up the property, season, and refi on to permanent commercial financing.