Never use GROSS return for Cash-on-Cash calculation!

The net sale amount is computed by taking your gross sale price of $215,000 and then subtracting your routine and permissible selling expenses, which generally include your broker's commission, owner's title insurance premium, escrow/closing attorney fees, recording fees, exchange fees, etc.  

I gross around 65k a yearI have a house I bought at 22 years old for 204,900 with 0 down through a VA loan.  

Here are the numbers that I'm using:After Repair Value = $150,000Desired Wholesale Profit = $5,000Cash Buyer's Desired Cash on Cash Return = 12%Loan Amount = $100,000Loan Interest Rate = 5%Amortized = 30 yearsPurchase Closing Cost = $3,500Total Gross Monthly Rent = $1,800Other Monthly Income = $50Property Taxes =  $1,350Monthly Insurance = $45Vacancy Rate = 8%Repairs = 8%Cap Ex = 5%Property Mgmt = 10%So based on these numbers I'm calculating $150,000 - $18,000 (12% COC) - $25,000 - (not sure what's considered fixed cost) - $5,000 = $102,000 but the calculators states that my MAO is $124,767.84. 

He has also offered to help mentor me in running the property if I go with seller financing since he doesn't want the place back in foreclosure.Based on my assumptions (and I had to make a lot): Actual CapRate - 5.36%CoCROI - 3.66% (not including coin operated laundry)Gross Income - $11,475, (15 Units, Rented at $850 each, 10% vacancy)Monthly Operating Expenses - ~$6k (Repairs, Prop Mgmt, Taxes, Insurance [No clue what to put here estimated $416/month?]

It's a 2 unit (2/1 and 3/1) so essentially grossing $3,000 a month. $160,000 loan$5,600 down-payment$4,800 closingPIMI: $770 (Principle+Interest) $133 (Insurance) $440 (Property Taxes EXTREMELY HIGH IN CT) and $96(Mortgage Insurance) = $1,440 a month. 

It says; over time over a portfolio of properties your expenses (not including financing costs) will be about 50% of your gross income. 

Especially when evaluating gross income and cash flow?

If after reducing my gross rents by all allowable deductibles, I have $10,000 in remaining profit for the year (to use a biggish round number), do I pay taxes on that $10,000 as if it was additional income and therefore pay it in my AGI tax bracket? 

To me it doesn't seem like a good deal if you're going to spend $350,000 on a home and only gross $3100 monthly.