You might also want to figure this deal from another angle -- the cap rate for the property.Take the gross yearly rents and subtract from that the percentage you think it will cost you to operate the property: maintenance, taxes, insurance, etc.

Subtract the $450 in net operating income and you have to kick in another $682 a month.

The value of real property (VRP) is then subtracted from the sales price (SP) and the difference is the amount attributable to the value of remodeling or other improvements (VRI), which amount is subject to the gross receipts tax, or:SP - VRP = VRI (Taxable receipts)----------I disagree with this position since I'm not a contractor and don't have a contractor's license - the statute clearly says that condition one is "A person possessing a valid contractor's license...".  

I would then subtract the $40 from your cashflow and divide by 4hrs. eg.

Then take your 10 year balloon amount and subtract 18 months from that to get 102 months.

There are no required payments and in the event of death the net cash value that goes to the beneficiary gets subtracted from the loan and the accrued interest balance.- Death Benefit: policy in place provides an instant estate to heirs potentially income tax free as long as the policy is in force at the time of death- a store of liquid funds via "cash value," which can be borrowed from with out bank guidelines for any reason within 3-5 business days up to 90-95% of the current cash value however Its probably not recommended to borrow up to that high because you'd probably want the returns on your cash value to be "enough," to cover atleast the admin and cost of life insurance aspects of the policy so that the policy is self sustaining and kept in force.

My tax basis for 2019 is $17,469 so I subtract that from my $20,000 profit to leave $2,531 of taxable (ordinary) income. 

Then subtract the negatively leveraged cash flows from the non-leveraged cashflows, and you'll see how much cash flow your extra $2M needs to throw off in order to have as good returns as the non-leveraged total investment.I'll wait while you do that...Done?

So it's not the sale price that you will pay taxes on, it's the net of subtracting acquisition from the sales proceeds.

Subtract out repairs, vacancy, capex, taxes, insurance etc.