Numbers, I am going to make this simple math for those that are new and may not understand all the terminology.

Push the cashflow to 10K.  1K isn't exciting.Keep the momentum.Frank If you're chasing numbers, allow me to share something I learned in a lot of higher level math courses: they don't end.

Based on our range of possible incomes I did the math last night and the difference in taxes is 7% on the lower bound and as much as 24.6% on the upper bound.  

My question is how the basis for each of the 4 properties is determined in the 1031 Exchange.To simplify the math,  the original basis is 500K and Sale is > $1M with a net of $1M after costs of sale then the capital gain would be 500K assuming there is no capital improvements.If each replacement property is 250K then the basis would be evenly divided with  500K/4 = 125K each.Selling a 250K for the same price250K - 125K basis = 125K capital gain  Fed Tax 125K * 15% Depr recapture 125K * 25KBut if the new properties have different prices: 100K 200K 300K 400K totaling 1M then wouldn't the basis' be proportionally calculated:10% * 500k orig basis = 50K basis20% * 500K = 100K basis30% * 500K = 150K basis40% * 500K = 200K basisLikewise the sale of a property would trigger additional depreciation recapture tax rate at 25% of the proportional amount10% * 200k = 20K 20% * 200K = 40K 30% * 200K = 60K 40% * 200K = 80K So, if I sold the 300K house for 300K then the Fed Tax @15% would be300K sale -  200K basis   = 100K capital gain  * 15% = 15K Fed Tax80K Deprec Recapture * 25% =  20KTotal Tax 15K + 20K = 35KGross Profit = 100K - 35K = 65K  before State TaxesThanks, R

Hi Annie,What is the math telling you?  

Just my math.

"You will be taking 2/3's of my income (never mind anything so trivial as math) and leaving me with a rental house backing up to a highway.

Check with a local independent commercial insurance agent that handles benefits, they will have a pretty good idea of the options open to you as a business.When we've done the math, a higher deductible plan usually wins out vs. higher premiums/lower deductible (especially if you can use an HSA).  

Both sides were occupied and had several months left on their lease.The two sides combined brought in 2600 a month (1400 one side, 1200 the other) so I did the math and with my down payment the mortgage / ins / taxes would be ~1500 a month.

Just do the math.