So, here goes...Assumptions:1) Sale price (minus) adjusted basis = taxable gain2) Adjusted basis = Orig purchase price (plus) improvements (minus) depreciation (minus) insurance collectedTherefore: $190,000 Purchase price in 2000+ $6,000 New roof-$108,000 Depreciation ($6k x 18 years)-$200,000 insurance from loss+ $17,000 improvements after loss-$95,000 Adjusted basisSale price – adjusted basis = taxable gain$200,000 – (-$95,000) = $295,000$295,000 * 15% = $44.250So my main questions are as follows:1) Is my logic sound?

These are all assumptions as nobody knows what future cap rates may be.

Assumptions:-$150,000 single family home price as you indicated-owner occupy for 12 months, as required-$1300/mo rent rate after owner occupancy period (based on random selection of Zillow listings), 10% property management, 3% inflation, 3% appreciation on value and rent, 10% maintenance, 3% vacancy-mortgage at 4.5%, doing 5% down payment with FNMA financing-$100,000 per year income for you and spouse, 21% effective tax rate, $5,000 per month personal living expenses -build up and maintain a minimum emergency fund/cap ex fund of $30,000 cash-doing this for five years before getting sick of it, and thus settling into the 6th such house foreverBased on these assumptions, and maintaining that $5,000/mo personal lifestyle, your real estate investments will provide more than 50% of that $5,000/mo lifestyle cost within 30 years.

You need all of the variables and assumptions accounted for in the spreadsheet and then you need to update them as you go.

Also a good rule of thumb is to make a reasonable assumption in your own mind that the project could go over.

The assumption would be that these properties would cash flow the mortgages. 

There are a lot of assumptions that go into both scenarios to casually make a recommendation online.

I read this Bloomberg article yesterday that says: "Sunrun works from the assumption that electricity costs will rise 3.76 percent annually.

They seem high to me but I don't want to make false assumptions.

However now that it has been accepted, I've been feeling a little extra paranoid about making any assumptions, as I went to BYU for part of my undergrad and have now been remembering how strict Provo City was with parking enforcement when it came to parking on Provo streets.