Account ClosedIncome taxes are normally not calculated in cash-on-cash return calculations because everyone's tax situation is different.For sake of comparison - the cash-on-cash return should be comparable on a level playing field.Person A - $100 return on a $1000 investment.

A in-law suite is not a legal rental so the appraisals are not comparable.

Want to sell it and buy other house with traditional financing.

Lenders have different lending terms and conditions compared to their competition.

Without the borrower willing to participate in a short sale, you have No chance of getting a reduced pay off, assuming this is a traditional lender/mtg.

This isn't bad compared to a lot of schools, but was still more than we wanted to pay. 

The same is true for the economy, we are growing but compared to similar cities we are falling behind (if you don’t read the Chung Report, I’d start subscribing to it).   

For a flip property, you're going to want to find a hard money lender or private money partner since traditional banks shy away from loans for such properties.

Stevie, to clarify my first paragraph above, you have two families of retirement accounts....traditional or Roth. 

if you purchase with an unsecured Line of Credit it will cause some challenges with a traditional refinance.