One of the major fringe benefits in California is Prop 13.

Because this product, as long as you secure long term debt, will give you steady cash flow, appreciate, and provide a ton of great tax-saving benefits.  

This is our first PM and  we are trying to work with them and give them the benefit of the doubt, but if they can't resolve the billing issues, we will have to find another PM.Susan

This is also more a retirement plan for us or we are looking more at the equity we are gaining (that others are paying).

That leaves us with a decent profit.But, how do we know how much to set aside for capital gains taxes? 

Anything i can do to expand my network and gain new friendships would be beneficial to me. 

In analyzing my numbers I’ve even tried to settle for a minimum profit just so I can get in the game and gain some experience.

Ok, so as a first time potential seller and novice investor-I just learned that if my I lived in my home for 2 of past 5 years I may not have to pay capital gains when I sell.

You need to incentivize them to mentor you or partner with you, either you work pro bono for them or bring something to the table of value.To your comment about "shady" or dishonest, I would encourage to you be as honest and forthcoming as possible, I don't know about you but I got into real estate because I wanted to do something meaningful, profitable for my family's benefit, I wanted to benefit from my level of effort rather than giving it to someone else, and most of all I wanted to make the world a better place by improving whatever it is I am working on; I want to be able to lay my head on the pillow at night knowing I did everything I could today to move forward in a positive direction and did so with integrity in order to prevent any form of regret. 

Your total gross earnings from the investment will be 120 X $24,000.00 = $2,880,000.00You will be receiving $24,000.00 per month during months 37 thru 144 until your total gains = $2,880,000.00 plenty of time for you and your wife to do other real estate deals and also plenty of money to take good care of Fil and yourselves as well.