Better to start on sound legal and tax footing.

You can Sell you Home Tax-free for up to $250,000 if you live in it 2 out of 5 years.

-Julio Hi Julio, Thank you for responding.What is Engineered Tax Service?

You did not account for property taxes. 2.

Assuming cost segging a rental is the only way:condo or townhome/SFH with NON depreciable landnewer property/fixtures vs older propertyNOT a pro newbie landlord vs REPself manage or prop. mgmt. co.GOAL is biggest tax bene.NOT best cash flowing deal

Do I get tax breaks as well getting a cash refinance loan? 

I'm a former CA resident and moved to Nevada (Lake Tahoe / Reno) because the housing is less expensive, no income tax, landlord friendly, and one of the lowest property taxes in the country. 

The money you make is tax-free if it's your primary 2 out of the last 5 years (if you rent it for a while, I believe there are some taxes, but it's prorated on time based on what I remember - not tax advice).

You give the vendor the completed 1099 and you report it also to the IRS in your tax filing.

If you are concerned about the relationship, you can have a partner or lawyer that you defer to in situations of concern.