However, maintaining a cushion for those times when all hell breaks loose (the boiler needs to be replaced unexpectedly and tenants forget that paying rent is a priority) will also make your life better and allow you to make better choices (as in do not rent to any warm body...an empty apartment is much cheaper than an occupied apartment with the wrong tenant in it).Good luck

I've read some articles saying the argument is that I don't collect sales tax at the time of sale, however nothing in that document says that a stipulation of being tax exempt is that the good will be taxable at the time of sale. 

What would be cheaper to install (either DIY or by a contractor?).

If I manage the properties that we have held for a long time that are generating taxable gains, this could allow us to use up the remaining passive losses.

@Joe DiceIs it true...You will pay state and city tax on your net taxable income at whatever tax rates NY law has established.  

So let us assume that we maximized our deductions and still end up with an annual taxable net rental income of $1000.

I will continue to pay $2500+ per year - even though there are much cheaper out there.

You could try hopping on over to the commercial side and seeing if a local bank will let you lean on the equity vs refi'ing it, that's more common with commercial lending, and cheaper.

Does this mean 20% of profit from rental is no longer taxable, provide you have it under a LLC.,?

@Anca LupseSelling a property is a big taxable event and it should be done right.If there is considerable taxable gain involved and your goal is to stay in real estate - you may want to consider doing a 1031 exchange which would defer the gain.