This has proven to be a very challenging and cumbersome process. the more I get in to this business the more I hear that pre-foreclosures and distressed owners may be a better allocation of my time and efforts.

Ex: My annual expenses are around 25k a year due to paid off residence and no car payment (and would be drastically lower in a foreign country with a lower cost of living). 25k x 25 = 625k (less conservative)25k x 30 = 750k (more conservative)If I'm confident in the calculations, once I have 625k parked in an income generating vehicle, be it a REIT, stock market allocation that pays dividends, or a 100 door unit, work becomes optional.All of this goes back to what people refer to as the Safe Withdrawal Rate (SWR).

If you plan to scale and grow a business I would define your cash-flow, and allocate it to certain uses.

When I talked to Jay, he explained that they typically don't start the rehab right away, since they're working with a lot of properties and need to schedule and allocate the resources accordingly, which I totally understand.

Allocating the properties total bill among the units without submetering isn't permissible.

Each month I reconcile my business credit card and allocate expenses.  

The posts I have read from Bill Gulley indicate that you should keep the lease agreement separate from the option to purchase.You should charge market rate rents and not allocate part of the rent towards the purchase price.  

Through case studies you will discover the steps and concepts involved in the cost approach-how appraisers estimate the cost of constructing a reproduction of or replacement for an existing structure; the three major components of depreciation and methods for estimating and allocating depreciation; and land and site valuation.

Hi Jean, The cost basis of each property would have been allocated at the time of the 1031 Exchange, so each property/parcel should have its own cost basis and therefore its own taxable gain, depreciation recapture, etc. 

I know that each person has their own opinions about their money but how much do you allocate when reinvesting?