You stop depreciating it either when you have fully recovered your cost or other basis, or when you retire it from service, whichever happens first.

Unfortunately, I spent months trying to recover funds loaned on three different transactional loans that were for longer than 24 hours.

If you put 30k down, then what you really want to know is how quickly you will be recovering this cash: NOI - Cost of Money = Cash FlowCF / Cash Investment = Cash on CashA lot of analysis that we do are important, but rather academic.

IF they are late because of financial hardship and have been a great tenant, we won't charge that late fee because it would cause the "snowball" effect and they may never recover.

Just like a lender analyzing a workout and options with a borrower you need to do the same with your rent and contract with a tenant.Is this a temporary problem they can get resolved or is it symptomatic of a bigger problem they cannot recover from in the short term??

I would choose a path that presents the least risk to your hard earned money, and approach it as a business transaction, looking for an acceptable ROI and what is left for them to recover will be FAR better than loosing both the cash and credit in a foreclosure.

They can afford to buy properties that don't cash flow too well because I believe their strategy will be to resell these homes when the market recovers. 3.

The "risk" as a flipper is whether I can recover these costs as so much depends on the appraiser.

In general terms it has taken almost four years for the markets to "recover" from their lows in 2007/08 to 2012/13.

As Detroit recovers (or doesn't), it's going to be interesting how Ann Arbor benefits.