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.  

Thats $7700 a year NOT including my accountant/Tax prep. 

@Nicole GrazianoI recommend that you have a consultation with a real estate tax accountant regarding your taxes.Bigger Pockets is a great place to find a real estate tax accountant. 

Tax-wise, profits are taxed at your ordinary income rate, and frequent flips may subject you to self-employment tax if classified as a dealer by the IRS.

Hey everyone, I finally decided to make a post after months of following BP.

You will want to fully understand the tax reporting burden you will face. 

@Armell MayersBigger Pockets is a great place to find a real estate tax accountant.

Use that loan to pay the back taxes and get things under control.

@David R Pustelnik recommend you first focus on raising the rent for the first time in 10 years.By the way, how much have your property taxes and home insurance gone up since this tenant moved in?

Finally the pro formas that they provide are absurdly basic and neglect at least 25% expenses, so are essentially useless.