You could exclude the walls, flooring, appliances, etc, if you're planning to replace that anyway.and FIFTH, When you take title, file an eviction on the son right away.

-Monthly cash flow 2600-1524 = $1,076-w/ 2% closing fees your CoCR --> (12*1076)/(72000+7200) = 16.3% CoCR excluding rehab-If all these numbers are true, seems like a solid investment if that fits the returns you are looking for.  

No idea how much, but I would automatically be excluded from licensing of any kind through the state in the future.

No idea how much, but I would automatically be excluded from licensing of any kind through the state in the future.

@Ilya PlugovoyIf you live in only one of the units and rent out the other unit, a portion of the sale would be subject to tax.You may be able to exclude the portion that you lived in and defer the other portion if you do a 1031 exchange.

Do you want to exclude lots?

Payments that you make normally fall into one of 3 buckets100% of the payment can be factored in somewhere on the returnPartial payment can be factored somewhere on the return0% of the payment can be factored in somewhere on the returnHouse-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion

NYS DOJ recently came out with rules that say insurance companies MAY NOT exclude any ESA that is a restricted breed. 

So if your DTI excluding rental properties is D/I, your existing Sch E rental income is $4000/month and ongoing Sch E rental expenses (do not include amortization of expenses already incurred or depreciation) plus current rental PITIA payments are $3,600/month, your new purchase rental income is 75%*$2,000=$1,500/month, and your new purchase rental PITIA is $1,800/month, your new DTI would be (D+($1,800-$1,500))/(I+($4,000-$3,600))"Rental Income Worksheet – Individual Rental Income from Investment Property(s) (up to 4 properties) (Form 1038)"

Even if they are famaliar with cap rates and roughly how to calculate NOI, they do not exclude or put below the line capital expenditures and other non regular expenses.