We have excellent management in Memphis, (not our own company) and can help with recovery.

But when you calculate the rate OVER TIME you identify the reasons for the spikes and the declines and make an educated guess on the future.I PREDICTED on the WEB the recovery in California when EVERYONE was posting about 15-20 years to recovery.

Your basis for the building in 2010 would be 200k.You will separately as of the completion date depreciate the FULL 40k in improvements based upon 27.5 years.In 2011 you will continue depreciation on the building.You will continue depreciation on the 40k in improvements.You will separately as of the completion date depreciate the FULL 20k in improvements based upon 27.5 yearsIf it was already rented in June: 2010 depreciation calculationPurchase Price: 200k +Improvements: 0k -Land: 25k Depreciable Basis = 175k Recovery Period 27.5 Years Full years depreciation: 6,363.63 Business use 50% = 3,181.81 Available/rented 7/12 months = 58.3% Building Depreciation to be taken = Improvements will be depreciated separately starting on the date completed a full year would be 40k divided by 27.5 = 1,454.54 (will be prorated based upon when completed)2011 depreciation calculationBuilding depreciation: 6,363.63 40k Improvements: 1,454.5420k improvements: 727.27(will be prorated)If you need clarification just post here I'm monitoring the topic.

http://www.irs.gov/pub/irs-pdf/p946.pdfPage 103 is the start of the CLADR tables which is one of your best resources for looking up the recovery period.

The recovery rate on unsecured second positions is in the low single digits close to 1.0% to 2.0%.

Once you get a judgement you can hire a collection company but they just trash credit.You can also get an attorney but they are a waste of money.They will just do what I am about to tell you.You can either spend a bunch of time collecting yourself OR you can sell your judgement to a judgement recovery company.If you sell outright to them you might get 20 cents on the dollar NOW.It depends on when they do the research if the judgement company feels they will recover anything or it will be a lost cause (debtor filed BK etc. or has a job that is not garnish able).You can also have the judgement company pay for court costs to collect and garnish but they will split profit with you 50/50.Judgement companies will tell you it takes sometimes 2 to 3 years to recover a significant portion of the judgement.You might be better off asking the former tenant what is the most amount they can pay TODAY to settle the debt??

It is hard to imagine anyone putting a crimp into investors business who are helping fuel the RE recovery.

This gets you out of the rat race of dealing with tenants, gives you a nice current coupon rate of interest of 7-9%, and gives you some upside potential down the road as housing continues its slow recovery.

I have a property under contract of which the adjacent lot has a dilapidated home scheduled for Dec 5 demo by codes dept. Codes chief tells me neither the homeowner nor the lender USAA I believe in this case have rea...

Finding friends of the tenant online and potentially contacting them may help you locate the individual.It's good to make the point with tenants by going to small claims/court so that anyone and everyone who might know them or about you knows that they can't pull that with respect to you and your company.Put that sign out and work on finding another tenant as soon as possible.In my experience, even through small claims, an average recovery of funds has been at 50%.