After the replacement cost has been figured, consideration must be given to the following factors:Physical deterioration—the wear and tear on the building itself,Functional obsolescence—usually in older buildings with, for example, inadequate lighting, plumbing, or heating, small rooms, or a poor floor plan, andEconomic obsolescence—outside forces causing the whole area to become less desirable.Deductions of More Than $5,000Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser, and you must attach Section B of Form 8283 to your tax return.

Oral Agreements Prohibited.5.73.

@Steven Hamilton II thanks for the info, after speaking with my partner on the deal it looks like we will plan to not LLC this deal and cover our selves with rental property insurance and possibly an umbrella policy if we feel the amount is inadequate. 

The tenants and their two pets have been living there for 18 years and pay $475/month, no deposit, no pet fee and on an oral lease.

So even if they are on one policy or all on one, the same situation of frequency could occur.

I look forward to making connections with others in the Biggerpockets community, whether in the Capital Region or all the way across the country, and helping each other make our businesses  and portfolios grow more than we ever could do on our own.

I reach out to some of these people to learn from them about how they acquired their huge inventory only to find out that they don't have a single property under contract; for many of them this has been their first attempt at advertising or marketing of any kind.I don't lump all new investors (I am one myself) or all gurus together but I can definitely tell which new investors have just attended a guru seminar.

Then you are not worried about whether prices go up or down. all you care about is the rents. plan for the worse case scenario, and if you still have 1 or 2 or 3 other people paying most or all of your mortgage for you, then what are you worried about?

It is not applied to any property since it is not associated with any one or all properties.

In other words, if the primary wage earner moves out, they will need someone to approximate that level and quality of income, or all will need to prove higher income and re-qualify, or you will not release the original party from the agreement until unit is completely vacated.