And while the principal portion goes into your net worth, it is still eating into your cash flow.

Hi everyone,I specialize in the Architecture portion of the process.

I own a 7 Family in the down town portion of Norwich that does well.

The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories.The Cost Segregation Study was performed on the Asset Depreciation Range (ADR) and is based on a 40% tax bracket for State and Federal Taxes.

Agreed with @Ashish Acharya point above.One thing to add, bonus depreciation is available for used property placed in service after 9/27/17, however it is does not apply to the portion where the taxpayer previously had a depreciable interest.

What are the pros/cons of a portion of the monthly rental amount being applied to the final purchase price, vs. no credit of monthly rent towards eventual price?

It is both more economical and in my opinion a far better use of resources to hire an attorney for the CYA portion as they are they actual experts when it comes to the legal pitfalls and trouble you can get in when conducting a deal.

If you could get it to appraise for 125k you would have about 90k to work with, you could pay the loan off and give your brothers their portion.

Hi Joseph -  For your first scenario, if you acquire another SFH with a traditional investment loan, the rental income can count toward lowering your DTI, but typically only a portion of it (usually 75% of the rental income is factored in).

"But when you purchase a property, your basis for deprecation is the cost of the property to YOU"sure. but the depreciation clock doesn't start when you purchase the property unless it's ready to be rented immediately and in the purchase year it'll be a fractional portion of 1/27.5th, so do to the calculation they'll need to know the in-service date.