Financial Highlights•Acquisition Price: $72,000•Renovation Costs: $35,600•Total Investment: $107,600•Funds: raised from personal savings and private lenderHow did you add value to the deal?

I get it...I get emotional with properties and buy into the sunk cost fallacy too.

Originally posted by @Eddie Torres:@Natalie Kolodij Standard or foreign LLCs in California still cost $800 annually unfortunately.  

This will cost you money on the back end.

Most PM software allows late fees to be charged.Ours allows us to absorb the cost of tenants paying electronically thru the software - it usually wants to charge tenants, but we want them to pay electronically.We manually charge tenants a Processing Fee for mailing in their rent, a slightly lower Processing Fee for depositing to our bank.Your success will depend on the Class of your tenants.

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

@James Boreno You’ll likely owe taxes, but don’t forget to account for your adjusted cost basis, which factors in the original purchase price, depreciation over 10 years, and any capital improvements.

I would also send the insurance company this same letter and tell them they are going to be responsible for the cleaning and repair cost.

I was wondering if there would be any advantage creating a LLC or business to pay for the renovation costs.

Way better returns on the cost seg than you'd ever cash flow from an LTR.