Just doing the math this thing puts out $20,000 a year so it seems like a really good deal on the surface with a return on assets of 33% which is really good. 

I this is not a math problem.

@Aaron Hollingshead - awesome stuff. would be interesting to try and figure out the numbers if you didn't have family there, and had to use paid services for that....just as a math exercise :) good luck on your next projects! 

Nice house but the math is not good even if one assumes that the market will rise.  

I believe this because of X and have calculated what I believe to be his real income based on Y, here is my math.

Doing some quick math, you have the max value after a turnaround of:8 x $300 x 12 = $28,800 x 50% Exp Ratio = $14,400 / 10%CAP = $144,00* The homes are effectively $0 since they require $5,000 of renovation.  

I am a math teacher and have been for some time.  

Unfortunately, when I do the math the Lake Tahoe property will be a money sink (~15-18 K in expenses maybe about 3 to 4 K revenue - With about 1 month personal use per year).So, my question is if I claim the Tahoe property as an investment property 11/12 months, and run it at a loss, but my Texas property more than makes up for any losses (i.e. my real estate portfolio is cash flow positive), will the IRS look at my properties individually and deem the Tahoe property as a "Not-for_Profit Activity" and disallow any deductions from that property?

These cash flows can consist of Loan interestRepayment of loan principalcash flow from operationsnet residue on saleThe math isn't as simple as measuring just simple interest.

Please explain any math that you may use.