Rental Income and Taxes

[Michael Win]

I am doing numbers on a rental complex I am buying and just wanted to make sure my logic was correct. 

1. These are rental duplexes. I assume depreciation 27.5 yrs.  Also 35% tax bracket.
2. Assume home value is 1 Million (not including land but including all closing costs/make ready). Assume Jan 1st for start of rental.
3. (In first year) I make 100K in rent income. 20K Interest mortgage, 5K principal payment, 10K make ready, 10 K maintenence/repairs, 10K property management fee.
4. Thus Taxable income would be (100-20-10-10=60K). I do not believe 5k prinicipal payment is deductible (correct me if I am wrong).
5. So if you can take the standard 27.5 yr depreciation then 1Mil/27.5 = $36,363 (I will round down to 36K)
6. I assume I would then take the 60K taxable income deduct the depreciation of 36k. Thus I would be taxed on 24K and thus 35% bracket of $8400?

I plan on putting money back into the complex yearly to increase rental rates. So if I put all of my profit back except 36K (amount of depreciation I can deduct), then I will essentially get 36K back tax free?

Is this correct? If so, I can leverage the 36K into another duplex or SFH next yr. If I keep this up, I should be able to buy 2 SFH in about 5 yrs.