You need factor in cap/ex/reserves before cashflow.

You owe capital gains tax on your new property net selling price, minus your original property purchase price, minus the amount the new property cost more than the net sale proceeds of your original property, minus any cap ex that hasn’t been fully depreciated.

What are your cap ex costs to get the property up to or above market rents. 

@Jay HinrichsYep CA ex pats find joy and happiness in the Carolinas. 

My (soon to be ex) wife and I bought a 3/2 in Hazel Green, just north of Huntsville. 

As a property investor or manager, it's crucial to grasp the concept of capital expenditures (CapEx) in multi-family properties. CapEx refers to significant investments made to maintain, improve, or upgrade a property...

My market is one of the most expensive in the country and I wanted to ask the BP community any advice you have with investing in a market where prices tend to be on the higher side (Ex: most multifamilies are north of 700,000 -1.5 million).

EX.1 Night Room Fee $499.00 USDCleaning Fee $90.00 USDHost service fee (3.0%) -$17.67 USDRemitted occupancy tax $94.24 USDTotal (USD) $665.57

Every property will need some sort of cap ex originally. 

A google search or talking with investors in your area would be best.10% cap ex: I think 5-10% here is okay.