@Nate Pucel The depreciation basis for a rental property includes the purchase price plus the cost of renovations and improvements that add value or extend the property's life.

I have been told by a contractor that the foundation of the building is intact, so it does not need to be torn down but requires a "gut renovation down to the studs."

Purchase price: $45,000 Cash invested: $40,000 Property Renovation Overview: 1453 Southfield Dr, Columbus, OhioWe are excited to showcase the extensive renovation of 1453 Southfield Dr, a testament to our dedication to revitalizing living spaces and enhancing the experiences of our tenants.

I’m weighing two options for our housing situation and would greatly appreciate your advice, given the complexities involved.1.Renovate and Buy Another Property•Invest to renovate our current home adding a bedroom to the house given our family outgrew the house.

Purchase price: $45,000 Cash invested: $40,000 Renovation Overview: 1453 Southfield Dr, Columbus, OHWe've transformed 1453 Southfield Dr into a modern residence.

Renovating usually means you need money to renovate.

I plan on doing most the renovations myself which requires equipment (such as tools).

I am starting a total renovation.

Investment Info:

Large multi-family (5+ units) fix & flip investment in San Francisco.

Purchase price: $2,800,000

Cash invested: $560,000

The property is a three-story multi-family residential bu...

At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.