Net cash flow is currently $50k/yr but pre tax.

This makes for clear records, easy tax filing, and a better look at profits.

This is really an accountant question as to how you can structure to use your RRSP's as an investment with it still being arm's length away so that you do not get taxed on it until it is used for the purchase at the end of the rent to own period.Best Wishes

They would also pay the taxes.  

I am in the beginning stages of learning about investing in tax liens and tax deeds.

You have taxes, utilities, CapEx, Repairs, Vacancy, Turnover, etc.

These were long time holds as long as 35 years.Pretty soon you will arrive at the required numbers including your tax exposure for Ca state income tax, make sure you are sitting down for that part.It is all covered by the video above and your accountant.

Do i need to factor in potential lawyer fees to evict?

I believe we have approached 5 CPA's or tax preparers in Colorado.

Its unfortunate that your closing costs increased by $3,546 in order to fund your tax and insurance escrow accounts.