Right now you can purchase property below market, so you ought to factor in the equity you will be picking up if you buy.

I don't know about the "coming back to haunt you" comment, but I do agree investors should consult with a knwoeldgable CPA on this topic.Depreciation recapture can come into play, but there are several factors to consider such as: You are receiving tax savings today and then repaying with tomorrows dollar (and we all know the dollar will be worth less tomorrow than today), if your current marginal tax rate is at 28%, then the recapture tax rate of 25% is slightly less, and if the gain derived from the building is less than the depreciation taken, you may only recapture some and not all of the tax.

I would be interested to hear any constructive comments.Area Location: Northeast DenverSquare Footage: 1219Bedrooms: 2 Bathrooms 3 Two Levels Style: Condo/Townhouse Financial Information:Comparables: $169.725Assessors: $189,600Bank of America $173,700Average Rental $1050ROI .14 (.65 factor used)Rehab cost maximum $30,000 (should be less)Asking $59,000$1000 Earnest MoneyI am hoping that this will be a quick wholesale deal

Jon,I have assessed the situation you have mentioned and that will be a deciding factor in my decision.

The external factors can cause a property value to go down very quickly.

A lot of factors like the price of oil and interest rates all came together for one perfect storm and BOOM.

I'm trying not to be discouraged...And I certainly don't want to jump just because it seems like a good deal...I think the part of my equation that I'm not factoring in is this:If I get the home at the rate I hope (60k) and I borrow 80k that will leave 20k in reserve.10k I will keep untouched for unexpected things.

Guess why... because these statistics never factor in the human element buying at wrong times and selling at wrong times.

Although, I specialize with hard money loans, I come from a technical background in programming before micros were born.There are many factors and many have their opinions on this topic as well those who only suggest and recommends only stuff they can profit from.Look at web development programs as a tool to build a house then there are other tools to maximize building a house in your toobox, same as web development.Primary tool though is your web publishing tool. this allows you to build a website.There were some good suggestions here, but each have their pros and cons.I went from frontpage to xsitepro myself.Why !

Another factor to consider might be your 'reputation' and how it could affect your future business.I have one broker who gives me a heads-up on every listing in my farm areas before they hit the MLS.