But it does not mean a squat for figuring out taxable income.Here is a sample calculation for taxable income, with many details omitted:sales price of $495,000minus purchase price of  $340,000 minus closing costs at sale per closing statement (commissions, seller concessions, title charges etc)minus closing costs at purchase per closing statement (legal, title, origination etc)minus all construction costs: labor, materials, delivery, taxes etcminus all interest paid on borrowed money, for all lenders including yourselvesminus all holding costs (taxes, insurance, utilities etc) but make sure to not double-dip since they are often paid at closingsminus all other costs for the deal not mentioned aboveHere is what you have to ignore: all loan principal amounts received and paid back, because they end up a wash: whatever you received you ultimately returnedearnest money, because you paid it but then it was credited back to you at closing, resulting in a wash again.

They wash up great, dry pretty quickly, and have a nice crisp feel.

I want to know about plumbing problems, but she calls me about things like the temperature of the water during different cycles in the coin washing machine, or another tenant putting her garbage can infront of her garage door, or that her gas bill seems high and I had to explain to her that it is not just the gas stove, but also her water heater.

Another large smoker issue is (like my nightmare tenant's homeless boyfriend) smokers like to smoke RIGHT outside the door with said door open a crack so that all of the smoke blows in, so your house ends up smelling like cigarettes anyway.Then your washing machine starts to smell or get tar buildup in it, eventually.

My thought was, he would continue to get paid without the overhead of being the landlord and make more money on his money so why not right?

I do have my personal check for the earnest money but I hope I can wash it all out as things progress.

Cut 2' up on drywall, Wash then Kilz (or Binz) the studs and subfloor 2Xcoats (remove the tack strip for the carpet, btw) Ozone machine again.Then reassess.

Water detector in a) a/c pan, b) water heater pan, and c) behind washing machine which will notify me if there's a leak in these places.

Also power wash the foundation. 

You may have to pay 10% for property management but you may also get a better return so it's a wash.