Tax it at ordinary income tax rates, that is fair, as after all, the contribution was tax deferred, but to then take an additional 10% is unfair.

And I'm cashflowing an additional 12%.It is true that all of those issues are due to the tenant, but a good property management company should shield you from those issues. 

The inspections would be 175 and If needed...... a additional 300 to do a pump out in order to inspect it.

I should also mention that I paid $1,000 towards my buyers attorneys fees and in addition he charged my buyer $850 for a grand total of $1850 in closing fees...so I am pissed off  that he took advantage.

Have tenants sign additional clause and you are golden.

If someone can help me answer these questions and let me know any additional information to look for, I'd really really appreciate it! 

Also any additional advice is of course welcome.

Thanks for the additional input gentlemen. 

That also brings me to wonder if I will need to drill an additional well and septic system when i add the next home?  

Just imagine how bad things will be with this additional option.I'm invested with two private placements and each of their checks for my status included sending over bank statements, as well as tax statements to show ownership in my real estate holdings.