Without getting into too much detail, the rule is sort of like this: when you sell property, you take the money you sell it for and subtract your basis to get a net gain (or loss).

I'll have to poke around the H&R Block software to figure out where I'm supposed t report amortization.Regarding the deduction, do I take what the loan costs were, subtract what has already been depreciated in prior years, and then deduct it...where?

Based off that, after subtracting out property tax, insurance, management fees, vacancy, I'd net around $300/month profit?

That leaves you a net on the sale of $36,824.Subtract out your negative cash flow of $7,865 and your initial investment of $16,830 and your return is $12,129 for two years.

So, subtract out your rent.

Just like wholesalers who subtract the rent from the PITI and say that is how much 'cash flow' you're going to get... not taking into account vacancy costs, utilities, maintenance, etc etc.

I have a question, I've read in a few places to ignore the listing price and that you really need to consider the After Repair Value (ARV) and subtract your rehab estimates etc....

We always say “go for the MIN-O: the Minimum Offer the Seller will accept.”In other words, start negotiating well below your MAO, and work up if you have to.You can always add to the price you’ll pay; but it’s very hard to subtract once you’ve given the Seller a figure.

In a typical proforma you have gross revenues calculated then subtract the vacancy rates (typically a percentage) which creates the effective rental income.

By the way, my numbers are rounded; the exact numbers are different and increase slightly every year.The word taxable is important, because you first subtract your standard deduction of approximately $12k for single folks and $24k for the couples.