My general investing and business observations are that people have very few issues when others are in control or out of the area when the market is great and making money, but what happens when the market turns or something goes wrong?

I don't remember what started the conversation but after explaining my situation and her knowing of two of my projects she asked a simple question. " what are you going to do when you rehab so many you run out of tenants" Food for thought, without serious economic growth in the region we could literally improve our way to lower returns.Above is just my personal concerns and observations.

We’ve observed the housing price increase, similar to the one noted here, but also seen a vast difference in what goes into a project.

It is a real estate observer. 

From my observations driving around, houses are not selling fast. 

I observed the same thing done by the same company before. 

On the rental side, cheaper prices means a lower down payment and more cash flow. did not mean you personally just making a general observation of those I see in the business over the last few decades they are very much driven by public sentiment.. and all it takes is one article like this and they get nervous.. and then its see I told you were where going to bubble and pop  LOL

While in line, I will make comments to observe reactions.

That’s just my thoughts and observations in my tiny local market though.

Partial answer;1.1  Money not actually spent, just put aside for reserves, is not deductible.2.0  Based on actual costs, plus acquisition/closing costs, plus "get ready for rent" costs, less land---not the value of the property.3.0 Don't know any formula-  use myamortizationchart.com  But, an observation:  I don't like the idea of spending an extra $1.00 to get 0.25 back.