*Will her normal income be taxable at the capital gains rate as well?

The Northeast doesn't normally fall in that category.  

He seems to know what he is talking about and I intend to believe in some of the things he says and one of those statements is you should never own one rental unit because the thing that you are dependent is that single unit is either 0 or 100% occupied and takes about the same physical effort as a small apartment project and according to another man I believe in is Lance Edwards who use to do that part time while he had a W-2 job that he hated and it took him only 2 years to quit his W-2 job and had no prior experience in real estate and Lance has made it in apartments and now does some teaching which is pretty normal of people.  

Since this is something that is normally handled by a real estate agent, I need someone to take me through this process step by step, please.

W/O an offer, we normally can't get to any PnL and our offer would very much like to be based upon that unobtainable PnL - - catch-22.My back of the napkin analysis goes like this:GSI - Expenses = NOIExpenses ASSUMED to be 33-50% of GSINOI * 10 (an assumed GRM) is the MAX  purchase price to be offered.When we get the Sch-E for two years and the corresponding rent rolls, we can correct our assumptions and amend our offer via the contingency approval of both.

The downside would be the requirement for a larger than normal down payment (to cover your current mortgage) and a smaller pool of potential buyers.

So in the end operational expenses were 66% of income not the normal 50% estimate.  

@Arpan Patel @Jeff Filali @Ranga Ramanathan 3 bedroom, 1 bath 900 square feetAsking Price - 110k  Offering price - 105k (the most ill pay for the property, will offer lower)ARV - 170k (180k seems normal for the area)Repairs - 20kCash on cash - 49%Monthly cashflow - $212ACQUISITIONDownpayment - 21kHardmoney lender - 12% at 2 pointsLoan amount 84kTotal money in 46kREFINANCEloan - 128kclosing costs - 3k4% over 25 years,rent: $1250tenants pay all utilities.

Unfortunately the agent we normally work with doesn't deal with short sales or foreclosures. 

However, interest rates can only remain so low before the market starts to overheat, and with a stronger economy based on recent job numbers, the Federal Reserve Bank ("Fed") will inevitably start to revert back to a "normalized" interest rate target.Going forward, the Fed will probably raise rates at about 25 bps (0.25%) per quarter.