For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

You can often find out where estate sales will be held by looking in the classified ads, or on specific estate sale sites.5.

Strictly passive income, and no issues with being classified as a dealer.

I am in the process of purchasing a rental property and my insurance broker came back and said that multiple insurance carriers denied the application because the property is classified as an "Ineligible Risk" we were told that their is 1 Insurance carrier that will insure but this will require a pre-insurance inspection.

I plan to meet all the criteria necessary to be able to classify the income/expenses from this property as active.

@Tricia Holway- thanks - the  fact that you  are  using it as a STR  will likely   make lenders  classify  it as a rental  ( versus a  2nd home )  ..you are  right - most heloc lenders are  onyl  lending on primary residences  ....I  would  try  * the  present  1st mtg lender *  the smaller to mid size banks and  credit unions that are  close to the  property  * the instituion  you bank at - good luck

The interest would then be classified as a business expense.However, you may want to consider selling the primary residence outright to take advantage of section 121 and then just use the proceeds to buy a rental property(financed).Happy retirement!

I haven't seen it posted yet, but if this is 6 units on one parcel of land (with one strap number), the most important thing to know is that this is either a condo property or an apartment building and not exactly classified as "multi-family" in most states since it's considered a commercial building.Federal lending guidelines only consider it commercial if it's 1-4 units.If you are financing, your appraisal costs will be a bit higher as you'll be needing a general appraiser and not a typical residential appraiser.

And if tenant does not pay electric company, the electric company shuts off the electricity service; imagine the landlord shutting off the power due to non-payment - that would be classified as "self-help" eviction.

But I had savings though, so I paid Sic months in advance at my apartment complex where I lived.