The goal is to be transitioning into self-employment in 2020.I have been following the BiggerPockets community through podcasts and webinars for the last year.

Pay yourself a modest salary and the rest as profit distribution.

All you need to do, is make sure that you have a minimum of $30k/yr in profit, to make the payments on the loans. 

I think I'm in line and understand all you are saying, but one last question.purchase price was $72K + $40K rehab = $112K all in...If sold for $200K then the gain(profit) is $88Kdo I pay taxes on the$88K or on the entire $200K.

That way your profit is unknown by the Owner/seller. 

There are not many single family rentals that can support large capital expenditures paid from cashflow every few years and still remain reasonable profitable.

Is it profitable or break even at the very least?

ARV 425k, hoping for a 60k profit.

Landlords who maximize profit by neglecting maintenance find issue with them.  

If we buy it, make it our primary residence, and sell it in 6-8 months, what kinds of taxes will we owe on the profit?