So I went the turn key route.I was impressed by USREEB as they have a professional office and employ several employees that know what they are doing.  

The taxes are calculated on your gross income from the rents.

Trying to calculate Cap rate for the primary residence I hold that I am trying to convert to a rental property.Here are the numbers:Original purchase price: $400KCurrent value: $600KCurrent loan amount: $300KPlanning to do a cash out refi to pull out $150K for a purchase of a new primary residence.The expected gross rent is $3.5K per month.Annual expected gross operating income: $40KAnnual expected cost (taxes, HOA, insurance, CapEx, maintenance, management): $20KNet Operating income: $20KTo calculate cap rate what do I divide $20K by?

So, essentially maintenance free for a while.Price $291,900.0025% down: $72,975.99P&I: $938 (180 day lock at 3.124%- had to hardcore shop around for this)total expenses including HOA: $1,422.50Projected Gross monthly income $1795-$1895 (still being built- not a ton of true comps-realtors think might be more with big pharma and Amazon moving in, along with all the development/proximity to RDU/Downtown)NOI (cash on cash): 6.13% - 7.8 %5 year ROI:  14% - 17.7%*Already has gained equity and isn't finished being built. 

Hopefully they keep their word with helping their employees find new positions with other lenders.  

If it makes enough gross rent with you occupying a unit then you could!

I understand that at that point you will also have roughly half the principal paid back but I would look for property where you can get 1% of the purchase price (maybe even 1.25%) back in gross rent.Also, where are you getting your property tax number?

.$5,020 gross rents @ 5% vacancy = $4,769/mo w/ expenses of $2,540.67.

Safer to over estimate Depending on the area and person, some take gross rental income and subtract 25% for CapEx, vacancy, and prop management.So if your saying 2800 in income x 75% your left with $2100 I took the expenses you said and added them up.

I would encourage back of the napkin Gross Rent Multiple analysis of properties for sale.