BiggerPockets

Taxes should be zero or at least small, thanks to depreciation. Just be sure you have a few grand as your cash reserve account and you should have taxes, if any, covered.

Without a loan, you could well have taxable income. However, you still have depreciation. Depreciation is based on the value of the improvements. That's the structures, but not the land. A rule of thumb is 80% of the value is the improvements, 20% is the land. You should really evaluate it, and get a better number for your properties.

You "depreciate" the improvements over 27.5 years. Without knowing what its worth, I'll use $100K for an example. Property's worth $100k, improvements are $80K. That makes depreciation $2909 a year or $242 a month. Assuming your expenses are actuals (vs. the "50% rule" estimate), and $300 is your actual cash flow, your taxable income would be $58 a month.

If your actuals are just taxes, insurance, and a few minor fixups, you'll at some point have a bigger expense. Maybe a month long vacancy while you get a new tenant or a larger repair. If so, you'll wipe out that remaining taxable income. Be sure to consider all your other expenses like a receipt book and mileage to the property.

If you really do have the $58 a month in taxable income, that gets taxed at your marginal rate. Assuming that's the worst case of 35%, you'd have a $20 tax bill each month.

Absolutely. I gave up doing my own taxes several years ago, before starting to invest in real estate. Took a couple of tries to find a good CPA, but he saves me much more than he charges. I know people use Turbo Tax or similar products for rental property. But, IMHO, that's penny wise and pound foolish.

"Any suggestions so I don't make a rookie mistake?"

Use a professional - yes
Expect them to do everything for you - no

My advice: Landlord/Property Manager should be diligent in tracking all income/expenses for the property using software/spreadsheets, make it easier for the tax pro to help you. Don't wait until tax season.

Jon, I know you have "all" the experience.
I have one property that is being rented by some peopls whose house was in/on fire...I'm getting paid by the insurance... they had me fill in a W-9...what does that mean as far as taxes. do I have to pay taxes on the entire amount that the insurance co. gives me?