The taxable gain is calculated as the difference between your net sales price and your adjusted cost basis (original purchase +capital improvements - depreciation).Depending on these factors you could actually have a much larger (or smaller) tax from the sale. 

Due to some factors, budget mainly, we were looking at class C- and D type homes in our target area.

After all the renovations, if I decide to keep it and rent it by the room, it'll probably still make about 30% ROI without factoring in the appreciating and loan paydown.

Are there any other factors you guys consider in deciding a property or location that can come up with a higher cash flow.Buyan

Most caps you'll see in SD range between 3 - 4.5% depending on a multitude of factors, location being a big one. 

If you buy mostly off-market you'll get zero commission, so a major factor for you will be if you plan to shop mostly via the MLS (which can be a good strategy especially for SFH where the data tends to be better quality). 

Hi Emma,You have enough in savings to purchase your first property and start househacking, depending on your income, debt, location and lifestyle will determine where you feel will be the best place to start. 

I was out of pocket nothing at close and am excited to upgrade my lifestyle by moving into this property.

I was out of pocket nothing at close and am excited to upgrade my lifestyle by moving here.Currently rented well-below market rate at:3 bed, 2 bath - $1,5002 bed, 1 bath - $1,200Studio - $875

I was out of pocket nothing at close and am excited to upgrade my lifestyle by moving here.Currently rented below market rate at:3 bed, 2 bath - $1,5002 bed, 1 bath - $1,200Studio - $875