Hello - this may be a newbie question but from reading the various articles on BP and Investopedia, my understanding is that Net Operating Income (NOI) is defined as operating expenses required to run and maintain the property but excludes Loan Payments, Capital Expenditures, Depreciation, and Amortization.The IRS has recently raised the Tangible Property Expensing threshold to $2,500 (from $500 previously) per item so if you took advantage of this change, wouldn't it decrease your NOI since you can expense smaller capital items as repairs & maintenance instead of capitalizing and then depreciating them over time?  

Then I would need to refinance and know that in three years the mortgage industry could be different, and there are risks that property values decrease.

One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible. 

We consider the BP community to be the most informed in the country, or at least that we have easy access to.We are finding that experienced investors, if they see the investment as risky, they wont invest, and the amount of investment required doesn't increase or decrease their interest.  

Electric use is not going to decrease in the future so I see no reason to delay making the required improvements. 

., a decrease in home prices wouldn't affect the rents very much, but that's very case-by-case, market-by-market.

Now if you know the steps before this, building rapport, the upfront agreement to avoid the me think it over, discovering the motivation of the seller, and decreasing the asking price, this “what if step” is just a trial close, and unless you really haven’t done a good job with the 4 steps before, if this should be very easy, should be an easy close.

a 30-40% increase wouldn't be so terrible that it eats up all my cash flow, but it does decrease the returns a bit, but the property would still be performing.

There are a lot of people who over pay for properties, but those are the ones who end up in foreclosures when the market turns and the rent decrease while vacancies increase and they can no longer afford the mortgage payment.

I spoke with the property manager about this, and she said the board doesn't enforce it, it's unenforceable (apparently the development period has passed so it's no longer a valid rule since it said DURING the development period specifically; she said it was requested by the developer to prevent investors from buying the homes and renting them out initially which would decrease resale value) and they have no intention of enforcing it, in fact, they want to take it out because they'd rather have the houses occupied than empty, which causes other problems.But she also said that they will actually be meeting with several home owners to discuss as some want cap or outright ban.