Primary residence gain is not taxable (to certain limits), so when you convert to investment property, you convert at a higher basis. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

In addition, your 30k cash-out is not taxable - but your sale profits are (even if tax-deferred through 1031). 

Every management company calculates their fees differently.

View report*This link comes directly from our calculators, based on information input by the member who posted.What do you think of this deal & why? 

So if your passive income from your SD property is negative 20K and your W-2 salary is under 100K, then you'd be able to deduct that 20K loss against your ordinary taxable income. 

I am a numbers person and want to know what I can expect for % Occupancy so I can start to calculate expected revenue/cash flow. 

It might work as a long term rental, if you need help running numbers check out the Bigger Pockets calculators or shoot me a message. 

View report*This link comes directly from our calculators, based on information input by the member who posted.Hello everyone. 

But on top of just simple ROI and ROE, you need to calculate your net worth returns from writing off interest expense, principal paydown on two properties, appreciation on two properties, etc.