Purchase and Sale of Rental Property

The net proceeds from the sale of a rental property shows up in the "real estate cash" column of the Total Income report and in the "net cash flow" column of the Real Estate report. But where is the outflow for the mortgage payoff?

I created a simple scenario where I purchase a rental property for $200,000 in 2009 with a 10% down payment and a 30-year mortgage at 6% interest. Rental income is $15,000 per year for five years, and operating expenses are $6,000 annually for five years (Yes, there is negative cash flow each year after making the mortgage payments). The property is sold in 2014 for $200,000 (so no gain or loss). To further simplify things, I set inflation to zero% and the cost of selling to zero%. This profile also has total regular assets of $500,000 in 2008.

Thie living standard of this profile is higher than it would be without the rental property (about 16% higher), even though the rental property loses money every year. How could this be? Is it because ESP shows a $200,000 cash inflow in 2014 but no cash outflow in 2014 for the mortgage payoff? The remaining mortgage balance in 2014 is roughly $167,000.

Two other questions: (1) My PDF real estate report shows the rental income in the "Expenses" column and my operating expenses in the "Receipts" column. Net cash flow is correct, however. (2) How do I allocate the original purchase price between land and improvements? There is only one field for purchase price, but depreciation can only be taken on the improvements.

Thanks,

Rick