Lots of depreciation you will pay no tax maybe even shield some W2 income.B.  8k maybe 10k if you pick the right guy to lend your money to in interest income you will be paying much higher tax rate on this income FYI no depreciation expense. 

Quote from @Erick Pena: A "good" rental property is one that covers all expenses (mortgage, taxes, insurance, maintenance, property management fees, and any other costs) and still leave a surplus (commonly referred to as cash flow).Calculate cash flow as: Cash Flow = Rental Income − Operating Expenses − DebtThere's much more to it, but that's the basic idea.

Whichever loan that you decide to use, the interest will be tax deductible due to interest tracing rules.

I just started using it and so far the owner info matches up with the county tax info. 

It links to our business bank account and our business credit card so come tax time, deductions should be easier.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

With that being said we tend to see a lot of CA buyers relocate here for the lower cost of living including lower home values, property taxes, insurance, no state income tax, gas prices etc.

Same tax situation and more likely higher potential to appreciate faster.

Would the federal tax liability be $140k at year 5 for the sale, with long term capital gains (ignoring any Net Investment Income Tax)?

If you need financial help, ask under the "Finance, Tax, and Legal" forum.