Would then the undepreciated value of the improvements be added to the basis, so for example.Property is 100k, 10k Depreciated, Improvements are 100k, 10k depreciated.If I was to sell for 180 would there be no capital gain?

@Ryan Taylor- yes you should -  provide your lender with the HELOC line of credit agreement so they can  calcualte the payment based on what yopu plan to use  on the HELOC ....this payment will be added to your  debt/ income  ratio ....if you plan to  rent the present home - you will need to present the lender with a signed lease a greement if you want  any rental income to  be incorporated to the mix - good luck

This doesn't even account for additional liens etc. that can be added on after the second is bought.Since the first is still on the property many liens can be attached.Contrary to popular belief the the 1st and the second are 2 different loans with different payments and numbers.The asset manager on one loan has the duty to limit losses for that one loan while the other AM handles the first.So the first and second positions have different goals in mind.Many seconds are worthless.Example had a customer call the other day.4 bed 3 bath bought in 2006 for 160,000.1st 130,000 second 30,000.Now properties are selling foreclosure for 89,000 REO.

My question is, can this property be made into an LLC with my parents having 25% each (50%) and my brother and me having 25% each or can we be added to the deed as co-owners?

All new fixtures will also be added to the property including new doors throughout.

I've already added that the rental insurance is required and that I must be added as an additional insured, the renter will not have access to the attic or crawl space, and that I can have access to the property for inspection with 48 hours notice.

@Kevin Cespedes Deed restrictions are basically caveats written into the ownership of a property....usually from the builder, but can be added for existing property as well...look to see who the actual owner of the property is...sometimes properties are constructed as low-income housing and have received tax credits in return for allocating a certain percentage of the units to low income...housing voucher, etc....but not always the case with a deed restriction.

It's great extra income, but I don't think I'll be adding it on anymore.

I spent a decade in remodeling, began to realize how much value could be added with a little work.

They could also be added as a Additional Certificate Holder.