I'm a little conservative on my first deal but I'm trying to make it as smooth as possible.

In the current environment you want to be very conservative with this number.

Property is in Cincinatti OH and the ARV is $140k Conservatively.

If you depreciate that over 5 years you get an extra $2K/year in write offs, if you're in a 25% marginal bracket you would save $500/year in taxes.I only ever did it on new carpet and HVAC systems, because I'm a big believer in "keep it simple, stupid", and extra depreciation schedules complicate your life, and I was always more interested in increasing my revenues than cutting my taxes.My former CPA was pretty conservative, but still I often expensed small dollar items instead of capitalizing and depreciating them.

Using zillow as my estimate (pretty conservative for my particular house) I would be looking at most a 65% LTV after the cash out refi so yes the HELOC would be temporary.

I don't k now if I'm to conservative with my bidding or whats wrong.

The FMV for the unit now approx $175 conservative (still owe $149 b/c of heloc) and there are a couple big plans in the works (huge corporate complex, direct train line to NYC) that would mean lots of growth and possible real estate appreciation in the next couple of years.Property #2Purchase Price $95,000 (Nov 2006)PITI - $1165 (includes $150 for HELOC and $215 Association Dues)Rent Received - $895Net - -$270 (ouchhhhh)Positives: This particular condo unit is in a building that is under renovation.

I tend to be very conservative in my pro-formas and don't generally use the 50% rule as most people do...sorry for the confusion...

Do search for this, too, and you'll find some other advice.Its very important to be conservative on this number, not optimistic.

But at least you were conservative.