You will learn and improve. 

A few questions…besides bonus depreciation, what are other big write offs using this rule.  

I have a lot of "guidelines" in real estate investing yet only one unbreakable rule - "don't get into a negative cash flow situation, EVER". 

 (1,000*12/50% Rule)-80k Mortgage at 4%=~$125/month) and be pulling out whatever the difference is to move on to the next project.One hiccup though is that you live there...so would your next project need to be a place you could live?  

It appears the units are below market, however with some cosmetic repairs and perhaps some capex's I feel I could increase the rent by at minimum (based on local comps) 68%.I would offer 85% of list and estimated $20,000 in repairs/upgrades (this is probably a generous estimate - the property appears to be in good shape, basically needs a face lift).With all these figures, including the 50% rule, financing with 20% down @ 3.5%, I come out to a profit of $262 per unit and a cash-on-cash return of 9.53%.So, does this seems reasonable?

As a rule of thumb, your mortgage payments need to be LESS than 50% of rent return, otherwise you're fairly much guaranteeing that you'll be getting negative cash flow!

A good rule of thumb is to take your calculation and add another 10%.  

Do you have a full knowledge of the RTA and how the LTB both interprets and makes rulings based on it. 

This can greatly improve your lending situation!

The following covers the self-employment rules. https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center