The current owner is shopping it around for 1.35m (7cap) and the proforma numbers are as followed: ANNUALIZED INCOMEActual MarketGross Potential Rent $191,639 Less: Vacancy ($5,749) Effective Gross Income $185,890 Less: Expenses ($91,497) Net Operating Income $94,393 Debt Service ($65,592) Net Cash Flow after Debt Service $28,801 Principal Reduction $17,403Total Return $46,204 ANNUALIZED EXPENSESActual MarketProperty Management Fee $9,582 Replacement Reserves $5,250 Building Insurance $6,712 Maintenance $12,560 Taxes - Real Estate $36,296 (37220 w/o exception)Utility - Electricity $2,453 Utility - Gas $12,369Utility - Water/Sewer $6,275 Total Expenses $91,497 Expenses Per RSF $8.39 Expenses Per Unit $4,357I did some additional digging and found that they offer Wi-Fi for the building (I talked to a rep and said providing service for a building that size should run 285 a month) and the trash was left off which runs about 285/month.

This business , and If the seller or a lender is having any negative impressions that will effect how the deal goes . 

SO the effective date of reaching the 78% LTV (where you need to get to using market appreciation and principal reduction) will likely be a lot sooner than 6.5 years using principle reduction only. 

So, I just bought my first house in Tacoma Washington and its ready for a complete remodel and possibly an addition. can anyone recommend a general contractor in my area or a designer?

and the effect that has on the cash flow of the property.   

So you can do one of three things:(1) prepare a mock 1040 as you normally would as this will give you a high level of accuracy if prepared correctly;(2) review your previous returns and determine your effective tax rate, then apply that rate to this years earnings; (3) have a CPA do it.I get this request all the time so I've built a template for myself that allows me to quickly estimate a client's tax liability.

I also highly don't think that refinancing into a VA would be effective.

Once you do that then I believe you can fully dive it to a plan on how to execute effectively within that realm.Happy Investing...

. $495 x 6 x 12 = $35,640 gross income. subtract 5% vacancy and your effective income is $33,858.

If you want the quick formula for your SFR:PGI (potential gross income)-VCL (vacancy and credit losses)+OI (other income--laundromat, cable etc)=EGI (effective gross income)-OE (operating expenses)=NOI (net operating income)If you get financing, you do not factor that into this equation.