Is it based on town zoning? 

Everyone is transaction based.  

You must exclude the land value, typically allocated based on property tax assessments or an appraisal, as land is non-depreciable.

First, all properties that appreciate the appreciation is based on the property value, not the equity. 

The overall LTV (including all 3 mortgages) will be key and your selling point will need to be that the 2nd mortgage ($8k) will burn off in 2.5 years (based on your surprise that it was even out there, I'd recommend that you follow up in 2.5 years and ensure that it's been satisified, so that it doesn't surprise you again in the future).Does the $8k grant vest over the 5 years? 

View report*This link comes directly from our calculators, based on information input by the member who posted.Hello All, Please help me analyze this BRRRR deal and figuring out what's missing here.What are the holding costs based on?

The section 8 rents are based on number of bedrooms.

When I run the numbers based on these rents, the property operates at a negative cash flow.If I increase the studio's rent to $1,400 per month, the property becomes cash-flow positive.

We also allow removal of a tenant from a lease as long as the tenant group is in good standing, and the remaining tenants qualify again based on their combined income. 

They determine this based on a % of Fair Market Rent (FMR).