Also, there is unpaid property tax as well, will the property tax be written off or which party will be responsible for it?

Is there a software out there that you use or recommend to enter all of the expenses into that will help with totaling all the expenses accurately into proper categories for year end tax stuff or by each project?   

@Bob Stevens that will be 8-10% net after all monthly reserves for property taxes, insurance, any owner paid utilities, vacancy (5%), property management (10%), and maintenance (10%).

It may help if you give some details on the area, how much you are charging per room, utility costs, taxes, etc. 

If it's self-employment income, the net income on your tax returns from 2022 and 2023 will be averaged.

If don't do a 1031 exchange and decide to pay capital gains, I would have about $450k free of taxes (this accounts depreciation and other costs).

And in a 1031 exchange the tax payer has to stay the same. 

I would look into getting a registered agent address lots of offerings for this type of service it will help a little with privacy and peace of mind but you can and will be found...For example my county took out the name search for property records but if you go to the tax claim bureau site you can still easily search by name and business name.   

I am curious if the fees I am being presented are in line with market norms:lender app fee: $10,000Origination fee 1% ($20,000)Lender costs: shows a fixed amount at $10,000processing fee $895registration fee $10,000Title and escrow fees: $4,000 est.6.5% rate fixed at 10 yearsPrepayment Penalty: Yield Maintenance months 1-114 (1% minimum)Third Party ReportsApppraisal Required Engineering Required Environmental N/A Seismic Report N/A Market Study N/A Funded EscrowsReal Estate Taxes Required Prop/Liability Insurance Required Special Assessments N/A Ground Lease N/A Replacement Reserves N/A Required Repairs TBD Debt Service Reserve N/AWould love to hear your thoughts on this as well as what you think is appropriate fees for the freddie mac sbl program. 

So you’re going to have utilities, a year’s insurance, taxes, mortgage payments and then the rehab cost.