People who write blogs like this are trying to sound too sophisticated, like they know too much.

Hopefully it's not because their underwriter is less than experienced or doesn't know how to read a sophisticated tax return.  

If you have a going business with a payroll, an SD 401k plan with checkbook control is the way to go.Jeff

When commercial multifamily is being sold to presumably sophisticated investors, brokers prepare pro-formas, as we all know.

About 15% total, or 13% is the payroll tax cut does end up getting extended.Track your expenses and be able to document them and they are deductible.

To those of you more sophisticated investors (@Bryan Hancock?)

The truth is, the recent temporary extension of the payroll tax cut is being funded by a "small fee" tacked onto governemnt backed mortgages (30 years of extra fees for homebuyers from now on [and probably forever] to pay for a temporary - 6 months - payroll tax cut).

This is likely to reverse as we come to grips with our burgeoning debt and fed govt payrolls are forced to sharply drop (as well as all the leech industries like lobbying).Sorry to interject a macro comment into your analysis, but you could not only have a property with minimal/nonexistent cash flow, but appreciation could be the same or worse.

If its a sophisticated buyer who's realizes the risk, that may be a chance they're willing to take.

Think about how money management works, the most sophisticated hedge fund would only take 20% and a few points for operating expenses.