The downpayment is 25%, with the seller financing 60% of that and me covering the remaining 40%.

. $425k) to purchase a 12-unit Apartment ($1.5M) with 25% down ($375k from the HELOC).The remaining $50k from the HELOC could go into fixing/rehab of the 12-units.Then cash-refinance the larger amount from the 12-units to pay off the HELOC in one lump-sum (as much as possible), then using the cash flow from the apartment to pay off the rest of the HELOC.Repeat the process with a new apartment.1) Does this make sense?

Returns remain down, and cashflow opportunities are harder to come by.

I'm only into year 6 of the depreciations.Have I just lost the remaining deprecation years for the flooring? 

And the result is very different: $5k is deductible right away, and the remaining $15k is slowly deductible ("amortized"): $1k per year over the next 15 years.

Property 1: 4/3 LTRCurrent Value: $475kPurchase Price: $363kDown payment: $40k (30 year conventional)Interest Rate: 2.75%Remaining Balance: $294kMortgage payment: $2369AVG revenue: $2775Property 2: Duplex - 3/2 House Airbnb & Detached studio apt 12mo leaseCurrent Value: hopefully within $575k-$600kPurchase Price: $591k (appraised at $599k)Down payment: $30k (30 year FHA)Interest Rate: 6.125%Remaining Balance: $552kMortgage payment: $5041 (including $362 PIM)AVG monthly utilities: $385 (full year avg)AVG monthly revenue: $5261 (full year avg airbnb + $1650/month from apt)

Income persistence requires that your tenants remain employed at similar wages.

Market OverviewThe Los Angeles retail market showed signs of stability in Q1 2024, with asking rents holding steady at $34.21 per square foot and vacancy rates remaining unchanged at 8.1%.

If the family member passes away, the property would remain in your name unless other arrangements are made.Given the complexity of this situation and the impending closing date, it's crucial to seek professional tax and legal advice as soon as possible.

Add charges for rent for the remaining months, estimated utilities, estimated cleaning and repairs and cost to re-rent (in our case: cost to PM is 1/2 a month's rent).