Someone gets injured in the basement your home owners insurance probably will not cover it and the liability would be pushed back on you.Would suggest discuss the finish with a Licensed Contractor, Licensed Expeditor and maybe a zoning attorney in regards to adding a unit to current zoned two unit converting to a 3 unit.Also, when buying a two unit and converting it to a 3 Unit, read your documents with out knowledge of the conversion the bank holding your mortgage could call your mortgage.Let me know if you have any questions.RegardsJoe Scorese

did Bob Kiyosaki open your eyes, OU, to assets - things that cash flow, and liabilities - things that don'tInvesting in single family fix/flips, or long-term rentals is quite challenging even if in your neighborhood but especially long distance.

How do I avoid  Minimize my Tax Liability????

When I get to PA taxes, I see the deferred gain in Schedule D of PA-40 which is recognizable and producing a tax liability.

But having a natural gas grill would be a big liability right?  

Now that I have your attention, I want to talk about your and my liability as property owners and what we can do to limit it.  

Thanks to the Cost Segregation Study, the property investors accelerated the depreciation that the first year depreciation was approximately $1,629,844.Through the cost segregation study, they were able to reclassify approximately $2M to a 5 year useful life, $2.35M to a 15 year useful life.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

OK here is my situation, I'm 26 years old with $90k I'm willing to start investing in real estate with, I have zero debt and near perfect credit history and not much liabilities in life at this point......no house, still single, no kids etc.

I would not partner with someone to build, too much liability if the house sinks or gas blows...

If you are doing conventional or agency financing, the lease will be added to your liabilities and included in your DTI.