I doubt that if he wants out of the property he will have issues with it...unless he smells more money on the deal.

Plus I now have J Scott's book on estimating rehab costs to battle rip off contractors.

I also fighting an internal battle with myself of owning properties outright or using leverage.

Especially here in Canada when it gets cold they will fill that thing with a cigarette smoke smell that never goes away.

That smell will creep out in the summer months and be a pain to get rid of!

your best bet is to have one on your team, and consult with him on this matter, i am not a CPA but i believe all those improvements should have been put on your taxes the years that you had the work done, it would have increased the asset value then and kept adding as you did the projects and reported them. i think you are in for an uphill battle now. the work you may have done say 5 years ago can't just be claimed now, there is 5 years of depreciation that is against that work that the IRS will claim you lost out on, so that will have to be deducted from your numbers.

The building is full of mostly great people, but there was one fellow that always smelled like pot.  

Luckily we both love the smell of profit and dont mind working for it.

@Brandon Battle I thought they recently changed the rules on fha where you could include 75% of rents even if you don't have a 2 year schedule E history.

As soon as you inquire about business/commercial lending it's like they smell blood in the water, they want higher downpayments, rates go up, length of loans goes down, and the process is way more of a hassle.