In the loan portion I included cost of renovation and purchase price due to I would borrow the renovation money as part of my loan.

@James Mc Ree Unfortunately, a good portion of the bats are babies who can't quite fly yet.

If you are a DIY'er don't bite off more than you can chew on the rehab portion; it is definitely not as easy as it looks. 

Or you could offer them a free months rent if they would sign a new lease with terms stating that they would pay for a portion of utilities.

Some managers only work a certain portion of the city.

@James Masotti & @James Mercure I wanted to jump in here and talk about Airbnb. 90% of my clients use multi-family investments and put a portion of those units (1 unit in a triplex) as a vacation rental / Airbnb.

So you can use a portion of the HELOC for the down payment, another portion for repairs or another investment etc and do notneed to use it all upfront.

I am also from Bucks county originally, the lower portion though (Newtown/Yardley).   

So, if your income is $40k and your total gain on the sale is $150k, your income is $190k and you will be paying 15% federal tax on the portion of the gain that is considered long-term capital gain.California does not have lower tax rates for long-term capital gains - you will be taxed at your ordinary state tax rate at the state level.You normally pay tax upon filing but if the sale generates a requirement for you to make estimated tax payments, you should do that.

The problem is most investors use a portion of the equity for living expenses or vacations  etc. and end up bankrupt or losing it all in the next market downturn.