If you hold them longer than a year you should be able to claim profits as long term capital gains which would lower the tax.

This can be higher or lower depending on OT and such.

This is clearly specific facts and circumstances based but I’m curious to know whether based on historical returns you would have decided on a go vs. no go on a property when you were on the fence due to these variable assumptions such as repairs and capex and your historical experience is tipping toward a lower % than the assumptions being used when analyzing.

I think a positive cashflow could be a hedge against a lower than expected ARV.

@Robert Gravelle really is no right or wrong -depends on your comfort level living far from your property and being passive while you leave it to a manager (many dream of this!).  

I’ll be sure to assume a lower income increase until I get a better understanding of my market. 

If you want some lower prices, Eastern Idaho is where to look.

I, personally, look for $200 per door, after all expenses and reserves, but that is a goal that you have to set for yourself, based on your comfort level.

So when you say cash flow do you mean (rental income - all expenses - mortgage payment (P&I)) = cash flow  - at the most basic level?

If the value is there to cash out more than you have into it, then you can balance how much additional cash you want vs. your cash flow comfort level.