@Greg KendallThe Capital Gain will be your selling price minus your basis.Your basis = purchase price PLUS capitalized costs (which would include many of the costs incurred to get the property to "in-service" condition...loan origination costs, closings costs) MINUS depreciation taken.And you are correct- the amount you owe is not factored in, although certain loan costs and interest can be either capitalized or expensed.Also @Andrew Reyes brings up a great point- if you intended to sell this property after you had rehabbed and placed a tenant, you may be seen as a flipper and the gain could be taxed as ordinary income.Andrew also mentioned that holding for 2-years will help.

We are agreeing to split profits 50/50 not including her broker's portion.

(I'm uncertain if that also included mortgage professionals, insurance agents, title company people, etc.?)

You have to look at the points as being a percentage of the total loan which would include the purchase price and the rehab.

I would also include 10% for property management fees even if you manage yourself.

It includes both gallons used and cost.  

Just make an offer with them financing the deal in the offer, including interest rate, down payment, amortization schedule and (for emphasis), what you'll pay in interest. 

You must have them fill out a application for including providing their SS# and all other information needed.

Basic details of the refinance I'm being offered:Interest: 4.5% up from 3.25%PMI: $0 down from $281Total Loan Value: $240,000Monthly payment including tax and insurance: $1,524 down from $1769I didn't catch the closing cost total, so I'll need to follow up on that.

That doesn't include the 3 points at closing and additional closing costs, etc.They all seem to be about the same.