How do you pay for the tax and insurance?

No state taxes, high appreciation, Economic and Job growth, Population growth, etc. 

There will be no assessment for increase in taxes or insurance so remains at $1935.

I have a followup question - I will realize a lot of capital gain from this home in Idaho, so I think unless I purchase a new primary residence I will have to pay that capital gains tax. 

Does he understand, Deeds, Due On Sale, Insurance, tax implications, servicing, contracts and so on?

A fool and his money are soon parted. 

If you provide any kind of substantial services like catering, car service, etc you will change you tax situation and no longer can file under Schedule E.

Note the property tax will be -10% on the rent by itself.Month 0 to 24: $2450 * 0.5 - $1573 =-$348/monthMonth 24 to 60: $2450 * 0.5 - $1541 =-$316/monthNext issue is due to the low leverage starting at month 24, the ROI takes a beating.  

If you are going to sell then you must understand the tax implications. 

I paid tax on it and mowed it about every 5 years so maybe put 10k into over the years.. deductive reasoning suggested city does not build and full blown interchange to go to nowhere.