If you are owner financing some or all of the property then the structure and valuation is different than a traditional sale.Also you won't be able to control all the sales in the neighborhood or what they go for.It is not like you own a subdivision and all the houses you built in it.4.You can do 4 but you waste time.Interest rates can rise and values can fall and you get a worse evaluation then you have now.5.

Of course its more complex than this, so you and your CPA will need to sort out the details item by item.

Nothing for vacancy, long term capital (even if its rehabbed, if you plan to hold for 20 years you'll buy roofs, furnaces, ACs and other pricey items), routine maintenance, make ready costs between tenants (some, but not all, may be covered by security deposits), legal expenses, lengthy evictions, accounting expenses, etc.Now there will be some months, most months even, when you only expenses are the PM, taxes and insurance.

I just don't know enough about those items to trust myself.

Good for someone who is unable to qualify for traditional financing.

Just as selling a property held for 364 days can have a significantly different tax implication than the same one held for 366 days, my task is to identify revenue and expense items where there might be tax year variability.

My question is should I put DW & GD in or is there to many maintenance issues with these items when renters are involved?

The speed at which my homes sell and my ability to get all the nice things done at prices well below retail, I am adding value with each dollar.Of course there are always some things that really do not go dollar for dollar such as putting in the light bulbs - such items cost yo money but really did not improve the value of the home, however, without them, it would be much harder to sell the house without any lighting in the fixtures aqnd would come up on the buyers inspection report.I typically get at least double for every dollar I spen in rehab.

Those are items you have to include in your analysis of a property."

That said, it looks like the operating expenses you're assuming aren't too far off.The one big item I'd add into the "expense" category (though technically not an expense in accounting terms) is capital costs -- these are the long-term costs you'll face to keep the property well maintained.