I am guessing the number is about 10 homes, with gross cash flow of around 500 a month each, Which would be about 60k or so in cash flow, deduct some for vacancies and repairs, and at least hear you would be able to live comfortably.

Gross cash flow would be money left after deducting all expenses and net cash flow would be cash left after paying taxes on gross cash flow.

And when you are in a business then there are more tax deductions that the IRS will allow versus a hobby.

However, there are lots of deductions (expenses) that reduce the rental income and sometimes your overall taxable income resulting in a lower overall tax rate: mortgage interest, depreciation, water/sewer/internet bills if you pay them, property taxes, repairs/maintenance, property management...The is an extra benefit if you work in real estate for a living; it's not hard to read up on the details and criteria for that situation, but I don't know them off the top of my head, and I'm definitely NOT a tax professional.

Expenses is money you spend in one year and that the IRS lets you deduct in that year.

A large portion of the work you will be doing when she does leave will fall under the normal wear and tear category, so you probably wouldn't be deducting it from the SD anyway.You got an $8k discount on the house.

Money was deducted from purchase cost.

I should have also gotten a quote from another contractor and deducted that amount from the final invoice because that is what I will have to pay.Overall, my new contractor is going to execute more work than the first contractor at a price approximately 20% less than the first contractor.

When I wholesale a property I typically deduct 9% in order to show net profits.

I am interested in having a concise list of deductions for landlords.