In order to open a business account I applied  for an EIN number under the category of partnership.

There is not enough building damage for the property to be razed, so it needs to be fixed.  50% depreciation can apply if the building has not had major updates the last 20 years. 

20 year 5/5 ARM 20% down minus repair allowance of $10,500 (applied towards down payment), seller paid $3000 closing costs also.

So , I’ve heard about cash out refinances, but I am a bit stuck on how it applies with this.

This also applies to anyone who tells you that you need to sign a contract within minutes of being emailed a prop (ie before you have time to run numbers and ask questions).

@Mitch BlackYou can apply the BRRRR strategy with an IRA, it is just that everything is done via the IRA with no involvement on your part or transactions between the IRA and yourself.The IRA would purchase and rehab the property. 

Same question could apply to roofs or appliances or really anything.Thanks!

I'd like to apply some forced appreciation to the properties too in order to increase their value.

IRC Sec 1402(a)(13) cannot be applied members of an LLC, even if the LLC is taxed as a partnership.As there is no statutory guidance, we must instead look to how the tax court interprets the issue, and there's been a string of recent case law that's helpful. 

From what you described, it sounds like they have a chance to sell at market value and still come away with a small profit perhaps- although I can’t substantiate your values provided.To do a short sale, the owners would have to contact the lien-holder, aka Bank, and apply for a short sale.