SO the effective date of reaching the 78% LTV (where you need to get to using market appreciation and principal reduction) will likely be a lot sooner than 6.5 years using principle reduction only. 

Here are some recommendations for you:Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meetSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingCheck out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box.

and the effect that has on the cash flow of the property.   

There isn't much of a selection on the mls and when a good looking deal comes up it seems to sell in just a few days every time.  

So you can do one of three things:(1) prepare a mock 1040 as you normally would as this will give you a high level of accuracy if prepared correctly;(2) review your previous returns and determine your effective tax rate, then apply that rate to this years earnings; (3) have a CPA do it.I get this request all the time so I've built a template for myself that allows me to quickly estimate a client's tax liability.

Our investors  still primarily select annual and those with single family rent to own portfolios only use 3 year.  

I also highly don't think that refinancing into a VA would be effective.

Once you do that then I believe you can fully dive it to a plan on how to execute effectively within that realm.Happy Investing...

:o) I'm just trying to sort through some big picture pieces... before selecting a few general markets to get specific on.

. $495 x 6 x 12 = $35,640 gross income. subtract 5% vacancy and your effective income is $33,858.