Subtract the adjusted cost basis from your anticipated net sale and you get your profit which is taxed as two things - capital gain/ordinary income, and depreciation recapture.Unless you're selling the house for a loss you will not escape depreciation recapture unless you do a 1031. 

As far as location, it doesn't really matter, the IRS is nationwide and from there states add or subtract their rules. 

If you don't want to do this you can subtract $1k or so.

Just a quick note for your question, HELOC is taking a percentage of the property LTR around 70% for best rate and up to 80% probably for a higher rate, then subtract your outstanding balance on the mortgage.

Just subtract one from each of those to get the bedroom.

Debt service is subtracted from NOI to figure your before tax cash flow. 

Hey Jeremy.First off, you want to look at what rent you can get in your area... you take your PITI (principle, interest, tax, and insurance) and subtract that from the rent you receive and that is the amount you will net cashflow.

So subtract the purchase price of 84k and that leaves 56k in repairs allowable, maybe 60k max. 

@Brian ZebrickNo, it is not an expense.It's part of the capital expense that will be subtracted from the sale price of the finished property eventually, but not when purchased.

When it comes to depreciation, the way I do it is to take the value of the whole property and subtract the land value.