But, if you put in at least $30-40K, hopefully the appraiser will take your other expenses, your risk and a reasonable profit margin into account.Just out of curiosity, why is the same appraiser appraising both sides? 

@Rob Stinogle If you own it for 10 years and it has a $5k loss each year that you can't take you've now accrued $50k in losses that are just in limbo.The year you sell it "frees up" those losses.

Why Tucson just out of curiosity?

Work odd jobs and try to learn widely; you can apply knowledge from completely different disciplines to something that might seem unrelated in surprising ways.Cultivating a driving sense of curiosity and combining that with a work ethic, with a willingness to try new things out, to take risks, to be uncomfortable, and to learn from your mistakes will take you very far in life, especially if you start now.  

Just out of curiosity, does the window not have a blind or shutter or curtain or anything that can prevent someone from looking in?

Yes, the 1031 exchange will defer all gain including accrued depreciation.  

Out of curiosity, did you end up pulling the trigger and giving them a try?

Here are some data based on my assumptions for the first year: Rental income: € 10.800Vacancy rate (4%): € 432Gross income: € 10.368Total expenses: € 2.552NOI: € 7.816Mortgage: € 7.159 (30 year loan with 2.55% interest rate, principal & interest)Cashflow: € 657Cash ROI: 65,70%Equity accrued: € 3.373 Total return: € 4.030Total ROI: 403,30%When you look at this deal through a cash-on-cash analysis the yield looks insanely high but what I’m concern about is cash flow leaving just € 657/year on the table, exposing me to any missing payments from tenants or market correction.What do you think about the numbers?

just out of shear curiosity have you checked out Vegas.. its close and I do believe there could be some upside..I do a lot in B ham personally and while I would not say its easy to get to..

The interest on the loan can accrue monthly and get paid when you re-sell the property or you can also pay interest monthly at a lesser rate.