Let me simplify the question: Brokers who have bought and sold properties!

But I'm trying to simplify this one cause its bigger and bigger seems to be more fun for me to look at. 311 7th St S - Herbshire Apartments48 Unit Apartment Building Offered at $3,224,327 at a 7% Cap Rate in Waite Park, MNFound on Loopnet. https://www.loopnet.com/Listing/311-7th-St-S-Waite-Park-MN/19090256/Looking at the proforma, Market rents= $384,961.00 (looks like they're based on market rents rather than their current rent roll maybe?)  

Simplified Example: you have a triplex; your monthly mortgage is $2,000; you occupy 1 unit; your other 2 units pay $1,000/mo each for a total of $2,000/mo.

but if you rent it for  $1000 per month you will have a taxable income of: $4600 =12000 (rent)- 7400 (expenses)this is very very simplified ....there are loads of other deductions and costs you can apply to the rented side, and actually come up with a loss and save taxes.  

Or am I over simplifying, i.e. not accounting for upgrades etc? 

I simplified the process, less questions.

Lease start/end tracking, rent tracking, automatic payment reminders and late fees, and a lease end move out process that simplifies a lot of the work related to security deposits and charges. 

That sure would simplify things though.

Please call Joe  or Jane at - phone number -.The rent questoin is just a simplified way to get a motivated seller to call you back who is open to a creative deal scenario.  

@Daniel Blau, It is tricky :)  But there's a couple ways to think about it that will simplify it in your mind.