Once you do that you could then possibly have funds left over to acquire other units.

Do you have more detailed numbers that your using that show money left over each month for you?

If the property is truly worth $36.5k, just sell it, pay off the high interest loan, pay Uncle Sam short term cap gains, and you may even have some cash left over which would be a huge win.

Thanks for the response everyone, for closing costs I was able to get the seller to pay most of mine with the leftovers being rolled into cash at close.

The rest of my depreciation (the leftover $30,000, that's $40,000 - $10,000) will follow along with the new property I purchased.  

Sanded and restained all hardwoods, gutted small powder room, remodeled bathroom (besides shower), and ripped out kitchen vinyl flooring with leftover hardwood that i had from my brothers house, redid countertops, and of course a new coat of paint in every room including ceilings.  

Is it a place where people are making very little money and have none left over, or is it a place where there are open air drug deals during the day and cars broken into every night? 

A couple months ago I was looking at a triplex that came up for sale in a close suburb,   long story short despite suffering from long term poor management, needing substantial exterior repairs, and having damage and 2 vacant and gutted units left over from tenants-from-hell it ended up selling to somebody else for 30% over asking,  needing another 20% of the asking price (at least) in repairs.  

Hi If I was approved for a loan for 180k but I find a property selling for 140k that is currently livable, however I  would like to spend money on cosmetic updates. Can I ask the bank for the extra 40k to do whatever ...

(Side Note: if you really want to jump your credit score in a few months (because it takes time for the reporting to update), and if your disciplined with your spending try this;1st) I went and did the math to see what my positive cash flow each month off my active income (let’s say you’ve got $500 left over after you go through your monthly spending avg. which is all you kick out vs what you bring in)2nd) Go get a credit card with 0% interest for 12mths with NO higher than 5% transfer fee.( their are some with low as a 0% transfer and I had got that one on my 2nd round cause my credit wouldn’t let me at first)3rd) do a transfer balance after 24- 48hrs of opening the card (Nope you don’t need wait to actually get the card just call in and tell them over the phone to send a Blanche transfer check to your bank account in the amount of your car Balance; because you’ve only got a 30day window of transfer with 0% interest for the 12mths)4th) PAY YOUR CAR OFF IN FULL, and take your old car note (let’s says it $450mth) plus your $500 positive cash each month and add all $950 each month to pay against the balance on the card5th) in 45days start checking your CreditKarma app (its free) and don’t worry about the 5% if it’s larger than your car loan % because once you’ve paid your car off your score will go up and in a couple months of $950 your car will be paid OFF not in 2more years or so...Thus saving you probably more than $2,000 in interest on the car loan (so you get to keep $$) and time in payments.Your saving money on interest (keeping it in your pocket thus making your pocket bigger!