But, they are income producing personal property because of the real estate and the rights that the real estate owner has.So, as Roger said, you may be able to find relatively similar comparables (recent similar sales) to the Subject (sfr) and get an idea of that value.

Yes - generally prepayment penalties are common on DSCR Loans, but can vary and some DSCR Lenders will have DSCR options with no prepayment penalties (there are also a few states that preclude any prepayment penalties at all, even on investment properties - this includes Alaska, New Mexico, Kansas and some others).There are two parts to a prepayment penalty - 1) How Long and 2) How Much1) Generally it will be no more than 5 years for the length (i.e. if you prepay in the first five years of a thirty-year loan you are subject to a fee), but 4 or 3 or 2 or 1 year options are somewhat common. 

I need to deduct the total depreciation from my Cost basis for the property being sold to figure out how much is subject to capital gains and how much is subject to 25% depreciation recapture.

I am a Subto student, so if anyone would like to learn about Subject-to or Seller Financing, I will make time for you.

If he sells he wouldnt be subject to capital gains?

@Alex Zokan asked a similar question to mine so I'm tagging him here as well.At what point will the rent from the subject property be included in DTI calculations? 

Hey Dave,It was great to meet you this weekend in Panama, one thing to consider is you would not be subject the UBIT (Unrelated business income tax) using your IRA money to buy parcels with no debt on them.

Accepts a "above market" offer for Subject-To financing. 

As of 2024, the bonus depreciation is 60% (subject to change pending the passing of laws) which allows you to immediately depreciate 60% of the asset’s cost.1031 ExchangeA 1031 exchange is a tax-savings strategy that allows investors to postpone paying capital gains taxes upon the sale of an investment property by reinvesting the proceeds through the purchase of another property (i.e. a like-kind exchange).

However, as a general rule, if you have two sources of income like that and you're using Schedule C to report your property management business, your income will be subject to self-employment tax in addition to income tax.