Hello all.So I took the advice of a few long term members and spent the first few weeks just perusing the wealth of information on the site,and it was a very useful tip because many of the initial questions I had were covered in the blogs and podcasts, but I have a few remaining and if anyone has a moment to advise I would be eternally grateful.Basically, what I am trying to figure out is this:* I have recently called time on a long career in the derivatives market and am interested in getting into RE investing, but the area which has appealed to me most is accumulating rental properties and paying them down over time.

., they increase the basis) and therefore reduced the gain on sale, which is subject to tax.The simplified version of the formula is: selling price less adjusted basis = gain ...so anything that increases the basis reduces the gain.In general, the adjusted basis is the original purchase price plus any capital improvements, plus costs of sale, less accumulated depreciation.Originally posted by "brainfry35":Your Taxable Income = Net Operating Income - Depreciation - Mortgage Interest.Because your taxable income is negative means you are due for a return from your dear friend Uncle Sam.Does anyone know what Estimated Sales Cost is on the Property Analysis Tool?

So, when cash is added, and the cost goes up accordingly, all that does (besides increasing cost) is delay the time to profit, and increases the amount of accumulated CF the REI must recover before profit is made.3 - You have your desired $15k/month (and a lot more) sitting in your hands right now...and don't realize it. 

@Ellen Alvarez, investors grow through various means: accumulating cash flow, leveraging equity, bringing in capital partners...Using the $20k for another property sounds great, unless the bank won't give you a loan due to your high DTI.

@Toben B.If you are in accumulation mode and have a set mind to own many more properties....

@JJ BlissThe security deposits do not belong to the PM or to you, but are held in-trust and belong to the tenant until such time as they forfeit them to pay for debts or damages.Not only must the PM send the security deposits to you or your new agent, but depending on the legislation in Wisconsin, s/he might also have to include the accumulated interest on each deposit.Sounds like the PM is not holding the deposits in trust and perhaps has spent the monies.  

Turned out the flies accumulated next to our laundry room since 1 out of 4 of neighbor's waste bins did not have a lid/cover.I had my property management company find that owner's address and send them a letter asking to install a trash lid/cover(They were not able to find the phone number).

My major concern is that this is a long haul strategy and thus the income from equity/rent will take years to accumulate.

, I would direct that 10% cash-flow into a reserve fund until it as accumulated to the point where you could carry the property vacant for 6-12 months.Once you have your reserves built and the property refinanced, it would be a good time to take on a second one.

As an Engineer, fortunate enough to make a great all expenses paid income for many years, I called it quits @ 49 after accumulating a portfolio of properties that surpassed my W2 income.