The repairs that have not been done yet, will not be added to the basis of the property.

We will be adding equity with these repairs.

Looks like your linked topic is in the Diary forum; since you are working on it and it seems like you will be adding more posts on that thread, that's probably a good forum for it so I see no reason to move it myself.

My understanding is that this amount can be added to the total purchase and would allow us to wrap up most, if not all closing costs into the mortgage itself.

Hopefully - you are cash-flow positive yet report little to no income on your tax return thanks to depreciation and other expenses.You may not be entitled to start taking expenses until the property is ready for its intended use as a rental property which appears to be in August.Gather up all the expenses from now to August because those will be added to basis and depreciated when you place the property in service.The good thing about Texas is that the state does not have a state income tax. 

...i reached out to an investor asking that i be added to their vip cash buyers list, as i have been given the green light by several buyers to bring sellers to table. she sent me a deal - its great, off-market in north cali with around 40 units, fully entitled. so i sent the deal to my cash buyers list and immediately got a buyer who wants it. i asked my investor friend if she pays a finders fee and she said yes...but since i know that my cash buyer is more than happy to pay above to asking price for the deal, id rather secure the contract myself and then assign it to my buyer but one obstacle i might face is that my pof isnt for 10 million its about half of that....with getting this contract myself also i dont have to worry about next time my buyer going directly to my investor and getting future deals that would leave me cut out of the deal.

You need to be added to their account as an Authorized Third Party (there are forms) and most recommend a Power of Attorney from the seller authorizing you on the account, along with the “you Mr.

I do understand how value can be added with forced equity rehabs, and you can acquire the property for low costs, but then to rehab the property you have to use capital to get the place up to renting standard.

@Alex WongAppraisal and credit report fees should be added to basis and depreciated over the IRS prescribed life.

.- Real estate depreciation isn't the only thing that can be 'added back' to your income.