Is this simple interest annualized?

we are going to buy a house in maryland  Rockville ,price between $530k to 600k, however, I have some questions: excellent credit score, one person work with stable pay with 120k gross income annually. another house rent out in PA .  

Eric the first thing Is I would look at how much you take home annually in income  from your job after taxes and withholding.Next look at your expenses and what things are not necessary or savings can be had.

So $725 for rent.Gross Annual Revenue - $8,700Effective Gross Revenue (10% vacancy)  - $7,830ExpensesMortgage 15 year at 5% (15% down) - $2,820 per year  ($235/month)Taxes - $400 per yearInsurance - $500 per yearCapex 10%- $830 per yearRoutine Maintenance 10% - $830 per yearProperty Management 10% - $830 per year (although I do self manage)Profit of $1,620 per yearThanks for your time.

@Rob BelandThe lawn care of $50/building is a monthly figure so I have a total of $100/month and $1200/annual for all 8 units.

Huge cash flows but annual turnover, tons of turnover renovations, new paint and carpet.  

Depending on your business model it may be an excellent tool for you.Being an agent gives you the legal right to represent a third party in a transaction, and receive a commission for it.There are costs upfront to get the license, then an annual cost to maintain it.You must disclose that you are an Agent (not a big deal)Ethics are the same whether you are licensed or not. 

My annual depreciation is thus the cost basis divided by a recovery period of 27.5 years, with the first year of service being determined using the mid-month convention, as outlined in Pub 527.This past year (2014), let's say I've managed to reduce my taxable income to less than 0, and I was wondering if it was possible to take less depreciation than the allotted amount?

If the tenants are on an annual or term lease, you could try cash-for-keys (not as common here).

. $71,888Our Est.ARV $80,000Annual Net income assuming cap x @ 3% : $5,930 ( /12= $494 mo.)Annual Net income assuming 100% occupancy: $9,000 (/12=$750 mo.)Thank you all,warm wishes,Davon