It's why for every unit we rent, we gain an additional $52.38 per month on top of rent, compared to our competitors who get nothing, or subtracting from their rent in transaction cost.

In other words, take the AVR times .7, and then subtract the repair costs, and this should be the most that you should pay for the properties.

So your tax deferral might be very small on that 15K or so gain, and you get to reduce that gain by costs you incurred over that year, and then subtract the QI fee to see what you are "saving" but really deferring.

I calculated the cap rate by adding all the monthly income and subtracting it by all the monthly expenses (not including mortgage payment).

The best way I can see an answer to this is to use an amortization calculator to see what's left on the mortgage after 5 years and then take that number and subtract it from the 600k you listed.

Make a spreadsheet and take your total rent and subtract vacancy, mortgage, capital expenditures/Maintenance, Tax, insurance, and property management (You always want to include this just incase down the road you end up using property management).

I will subtract the Rehab estimate, Holding and Closing estimates from the All-in cost basis to come up with a Maximum Purchase Price (MPP).  

Subtract the Rehab Cost ($20K) and you are left with $137,500 to cover your offer/purchase price, Holding and Closing costs.  

The most important thing to look at is the historical operation of the property, then factor in the expense ratios or nearby properties, consider the differed maintenance, age of building, class of building and other operational expenses you may add or subtract to optimize NOI

As long as your income is less than 150k -for example if you make 50k at work and 50 k from rental income 100k gross earnings from the year you could subtract 1/27.5 years of depreciation let’s call it 50k and 30k of interest and tax so your tax able income would be 100k-80k=20k taxable income-how would being a real estate professional help me making under 150k Would appreciate any help or resources you could refer me to