At that point you would have three items 1) your adjusted basis 2) your depreciation recapture (25% tax IIRC) 3) your gain (taxed at 15-20% IIRC).Your basis throughout the years will change as you decrease it by taking depreciation, and increase it when you perform improvements which will then be depreciated.

There are several different ways to go about this and a ton of great posts, member blogs, BP blogs, BP podcast, books which cover this topic in great detail so I will just provide you a few terms to search and you will find all the information you could ever want right here on BP.1)  Wholesaler - You are right if you could find a great wholesaler this could provide you a steady stream of properties which could be a good input into a fix/flip model.2)  Motivated Sellers -  If you want to dive in you can start looking for the motivated sellers yourself but this is not a easy endeavor.  

@Colleen F.has posted some items to consider with respect to consideration for the occupants. 

Each year, after I purchase a property, I have to re-look up how to treat the various items from the HUD-1 (closing statement) when preparing my Schedule E.

Looking to build models for a business plan.  

We've aimed at filling in the gaps through our education models.The other model of real estate education is through the REIA groups, who create more connection, but once again bring in speakers with their 1k-2k products that will supposedly revolutionize your real estate investing business.  

Through what I am learning from these different sources I am starting to build my business plan/model.

Oh...Different business model you say?

QuickBooks Pro has a Fixed Asset Items List, which allows you to enter in everything you want to know about your rental property.QuickBooks has been around a long time, is in the stores just about everywhere, and is sold at reasonable price, plus it grows with you.Nancy Neville

These items are what keeping me from using it exclusively on my iPhone.