Correct assumption.   

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

That addresses two erroneous assumptions that we hear all the time: (1) "I'm earning money from activity XYZ, but I don't have an LLC, yet.

@Julian Sanchez Lots of assumptions to be made based upon the info you provided. 

With the WSJ Prime Rate in the 8%s, you're probably in the 9%s on your line right now (just an assumption).

IRR estimates are extremely sensitive to the exit cap assumptions.

There may be instances of gain to recognize if it’s deemed a disguised sale, but for simplicity sake, the assumption is this is just a straight transfer)

I am a realtor myself so I can save on fees but my assumption is if I sell I end up somewhere with $200k that I would then need to pay capital gains taxes on. 

@TJ BardossasRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Just checking my math.This is obviously after all expense , depreciation, cost set, property tax write offs, 20% etc.my question is are my assumptions correct?