Could you do a hypothetical explanation of it.

It will be a tough explanation for a field agent if ever audited. 

The long explanation above conveniently skipped the fact that the taxes due on $35k at exit will be higher than the taxes paid on the $35k over the 5 years if the amount was not offset by depreciation loss.It’s ironical that the only way to realize the gains without paying taxes is to die.

I understand that this is the base for the apartment complex analysis, what I am having a hard time understand, you pulled a number out the clear blue sky with no explanation on where it comes from or how you derived at it, and it's that .10 (point 10) that can change everything if I wanted to make it higher or lower, so what justifies the .10?

I know I am five years behind on watching this video but awesome explanation of the concepts. 

If you borrow money it has to be for ever a month in your bank account, otherwise you'll get questioned and the banks will most likely would not give you a loan unless you have a good explanation.

Wants two bids for every job in the effort to save $20.00 - not caring if the tenant goes without AC or hot water for several days.Does not understand basic accounting and needs constant explanation for what the income / expense statement means.  

@Alex Hamilton thank you for that explanation! 

@Bill Hampton great explanation and alternate thought.

Regardless, I was on the hook for these complications, had they occurred, and would have made the seller whole.Per your own explanation.