Your basis will be what you paid for it plus any improvements or the fair market value, whichever is lower at the time it was placed in service as a rental.

I just ran a property that I would love to buy if I can find the private money or possibly the hard money at the right rate and ran it through the BRRRR calc.All looks great except when I look at the financial projections section I see the following...50% Rule Cash Flow Estimates Pre-Refinance Total Monthly Income: $2,850 x50% for Expenses: $1,425 Monthly Payment/Interest Payment: $600 Total Monthly Cashflow using 50% Rule: $72 50% Rule Cash Flow Estimates Post-Refinance Total Monthly Income: $2,850x50% for Expenses: $1,425 Monthly Payment/Interest Payment: $556 Total Monthly Cashflow using 50% Rule: $869Am I missing something or should the total monthly cashflow Post refi be that high?  

interesting to learn a little 'lipstick on a pig' can improve selling prospects.Thanks for sharing

I'm curious, when you're budgeting for actual construction costs, do you have a rule of thumb you use to estimate?

“Few, if any lenders are going to accept this secondary lien position,” real estate agent Then said, so the tax-lien associated with the HERO improvements will have to be paid off, in most cases, at the time a sale closes or the mortgage is refinanced.The question becomes, who will pay it?

He said there is only one rule you need to know about being a landord "if they can not pay one months rent they can not pay two".

If we decide to make an offer, is it possible to either 1.) make the sellers put the full price of repairs in escrow (even though the other unit holders will benefit from the improvement); or 2.) make the offer contingent upon the condo association putting a certain dollar amount in escrow to handle the repairs; or 3.) do a combination of 1 and 2 saying that if all of the owners don't put a certain dollar amount in escrow by a certain date then the sellers pay the full amount of forfeit the deal?

Medicaid rules keep evolving, and states all differ in how they set up their programs, some do it well, others just create big bureaucratic mess.

I am looking for more info on rules and legality as well, to ensure I am doing things right. 

The area around me is improving and I became interested in what it would take to buy my building.