I think Jon nailed it; And, the only thing to add is that your basis as a % of the sale price, then that percentage determines the % of principal that is allocated to the basis, the excess is a gain on the sale.

So, let's be clear about how poor someone is before they are the bad kind of poor.I think the first thing that needs to be addressed is the pervasive attitude that poor people have somehow created their own poverty and are simple-minded people that need to have their finances governed by someone else.Just look at the shows showing celebrities trying to buy food for the amount of money allocated to food stamp recipients to see how impossible it is for them to eat on that amount of money for food. 

Maybe instead of dumping more money into the marketing, you just need to allocate the current spend to a different target that yields higher commissions.  

"--------------------------------Not a question of the landlord "properly maintaining" the water line, it's a question of allocation of loss/responsibility after the inevitable decay/damage/loss occurs.

How much are you allocating to reserves.

We allocate percentage as fair as we can.  

You determine the number of "tenant days" for each unit, and the total "tenant days" for the entire bill, and allocate accordingly.   

With that being said, how much of the $70k will you allocate for real estate? 

Obvious reasons for this is to deduct all expenses and not do a pro-rata allocation of expenses. 

You should add expense for capes, building / yard maint, + you have not accounted for vacancy or property mgmt - even if you self manage I would allocate 10% for property management That said could still looks like a go depending on financing.