Ideally I would like to begin picking up multi-family units.

I know I can depreciate my purchase property less the land value, but how do I factor the new construction into the tax picture?

You just have to be aware of these numbers, and factor them into your evaluation.

This is a huge factor in what resources you use.

This will determine many factors of how you invest.

Ideal price point between $40-$60k.Had to fill 3 vacancies so far this year so landlording certainly keeps me busy.

A SFR would be the ideal start point, or if you're feeling really really brave and want pop the clutch on REI.

That's $1,600/month additional each month, over 60 months that would be $96,000 gross cash flow per month.Now of course there are many other factors, like other expenses, vacancies, etc, but your target is really not far off given your current monthly profit.Of course I do not know your monthly lifestyle either so that may trim things down a bit if you have extreme monthly bills and a high end lifestyle.

.$100,800 Potential Gross annual income ($5,040) 5% Vacancy Factor - could be more ----------- $97,760 Effective Gross Income($26,400) Taxes, Ins, Water, Sewer($ 9,576) 10% Property Management($ 9,576) 10% Maintenance($ 1,000) Misc Fees, snow removal etc.------------$49,208 Net Operating Income$49,208 @ 8% Cap Rate = $615,100$49,208 @10% Cap Rate = $490,208$49,208 @12% Cap Rate = $410,066The numbers could slightly be skewed by higher/lower vacancy factor (5% is the lowest I would ever use).

For instance, a home with an ARV of $100k or less, you need to be at the 65% minus repairs, a home with an exit such as yours of $475k can be as high as 77% IF it is an easy and quick flip, guideline should be set no more than 75%.For homes with longer rehab times and higher ARV's like $750k and up, you need to get the rule back down to the 65% mark again.Point being, the rule needs to adjust according to each property type, time factor, difficulty factor, etc.At 81% of ARV + you added in rpeairs on top of that (if that costs was $25k) then your "all0in cost to exit price was 86.5%Your $42k profit based on an estimated $411k cash investment gives you a cash on cash return of 10.2% (that is only half of the minimum I shoot for).