I've been in the IT industry for almost 20 years, but I'm not an expert on where that liability becomes a 'real' problem.

thanks @Wayne Brooks. i know its difficult, but theres a lot of talk about depreciation and write offs. i've read the rich dad books on tax savings, and its all well and good, but i was just wondering if theres some seasoned investors that can share what their average tax liability was as a % of their earnings, even a range would help. maybe something like 10-20%, as compared to my 30-40% as a w2 earner.

So, as long as you and your sister have a direct ownership in the property, and do not share ownership through an entity such as a limited liability company you generally will be allowed to defer gain under the 1031 exchange provisions.

An unused HELOC = unused liability.....

I use Mint where I have logged in all my assets and liabilities and it calculates most of this automatically.

In addition, I would have some type of dated, liability waiver written up for them to sign that states in writing that they legally waive all interest in the existing contract that specifically renders existing contract null and void as of a certain date and time and releases you of any and all obligations of said contract.

The main reasons for the insurance are total loss from fire and the liability coverage in case a tenant was injured or killed on the property.

The general area I agree is good, from my research.As others have noted, I do feel the size becomes a liability.  

Most banks cost of funds are generally short term in nature (checking accounts, savings, cds, etc) and therefore the don't want to match long term assets with short term liabilities.

But I've found that the two other most important things that help when meeting a new commercial banker are 1) A personal financial statement which is essentially a personal balance sheet listing all of your Assets and Liabilities and totaling to your net worth. 2) Profit/Loss statements on your existing properties for the last couple years to show your track record.