However, the allocation between interest and principal changes over time.

It is capitalized and either recovered upon disposal if allocated to land, or recovered fully or partially via depreciation at 27.5 class life, straight-line, mid-month (presumably if residential rental or 39 if not).

In real estate investing, it's generally prudent to separate your reserves for emergencies from funds allocated for capital expenditures (CapEx), maintenance, and vacancy costs.

We allocated $300k for rehab, so $0.5m value add.  

Depending on the structure of the deal, a certain percentage of the equity is allocated to each group.

But, after we consider all the math, after tax benefits, after tenant payments allocated unto principle paydown, after REAL actual appreciation (FYI it's not some big crazy #, we us 2.9% for annual appreciation if done in correct strategic area) we have a TRUE net of maybe MAYBE as much as a few hundred dollars net loss THE FIRST YEAR. 

Limit Research Time: Allocate a specific amount of time for research and analysis.

unless youre buying turnkey, allocate more than you think for cap ex

We could rent out this home for $2500 No way that has positive cash flow in Florida with their property taxes when allocating for all expenses.  

I'm filing out the information and I'm unsure of a question.In terms of non depreciable land value in the area, is a dollar amount or percentage allocation preferred?