One is a 3bd. 2 ba. 1055 sq. ft.built in 1921, completely remodeled 8 mo.ago, new roof, vinyl siding and windows, hot water tank, kitchen, bath. carpets, paint, etc.currently leased for $650.00 mo. price 35,000 tax appraisal 23,000.

Its a special insurance for building/remodeling.

Improvements, like an addition or major remodeling would increase your basis.

I typically use a construction loan to update or remodel for the initial purchase.

The same is also true if there is being remodeling done to an existing property that amounts to over $10,000.

On personal note, I remodel houses for a living...

Very new investor, my immediate goal is to buy a few reo's while they are cheap and remodel/rent them.I have experience with remodeling and buying/selling houses, but have never been a landlord, so I am not sure what my long term goal is atm.Scott

Makes me think of the Lady Luck in downtown Vegas that shut down, what two and half years ago for "remodelling".In the article, they point out 20-25% of their sales loss is due to customers being unable to get financing.

I'm using a home builder who's returned to remodeling to do a garage for me now at a rental I've decided to move in to.

In my remodeling peer groups too, smaller company owners, those companies under 1 mil gross, will resist using real numbers to run their companies.