What is even more confusing is the -10K "current principal limit and current line of credit."

This is our current situation:- Cashflow: $2500 monthly- Mortgage: $4000 monthly $303k big loan $56k small loanWe are using our cashflow to pay an extra $2500 every month on the mortgage principal to keep the bank from robbing us blind.

So I finally decided to take an aggregate look at my numbers instead of year by year slices, since I now have a reasonable number of rental data on my own properties (656 months)Here's the breakdown of where the rent monies have gone:Mortgages: 35.8%Cashflow / Principal Reduction: 29.7%Property Tax: 11.2%Mgmt Fees: 8%Maint/Repairs 7.2%30% profit seems better than I would have expected, how does this compare to what others are seeing?  

Principal forgiveness is a taxable event.  

That includes PITI (principal/interest/taxed/insurance), property management, maintenance and repairs. 

Here are the numbers:Purchase price: $290,000 (I could spend $30K to finish the other unit's basement to increase the rent)Mortgage (principal, interest, and tax): $1330/mRents: $2,350/m (If I finished the basement in the other unit so to increase the rent, I could get $3,080/m)Down payment: 20%Property Management: 8% of rent collectedThe property is in decent shape but the roof needs to be replaced (but not immediately) which cost about $6,000.Is this something I should consider or run away?

The other half goes towards the mortgage payment- principal and interest, then the rest is cash flow.  

I would build up reserves and then make double and triple payments each month to knock down the principal quickly. 

And you can always pay extra each month which will be all principal.

The principal   never changes, it only accrues  interest.