Not to hijack this thread but, is there a certain standard you use on determining how much you should have in reserve.

It is standard.

The building itself is structurally in pretty good shape, its a standard two sided roof structure (i'm not good with the names yet) which a fairly simple layout inside.

Now that you have the risks pointed out, the benefits are tremendous going with the "assuming you buy right aspect"You control property you otherwise may not have been able to, you increase your tax deductions, and cash flow, and the low interest rate currently is the cheapest $ in the biz right now.

The problem is very simple - we've spent too much (on every level) to support an unearned standard of living for decades.

I show no taxable income after deductions. 4.

If you are getting a positive cap rate, you are making money, since the OE has already been deducted and the NOI is your cash flow (not taking into consideration debt servicing).

We are rehabbing an property that we will occupy when finished, what parts of the work etc can I deduct or use to minimize tax exposure on the property?

Also ask for a reduction in your standard rate.

Simply to say that if you can get into a property with 35% equity at purchase, have adequate reserves, you can still benefit from that investment without cash flow (tax deductions, 35% equity, future appreciation, etc)Bottom line: Shoot for cash flow on buy and holds, buy with equity, buy in a market your research has pointed to future appreciation, use the power of leverage properly, manage properly (self or hire) and repeat.The topic was talking about single units and then apartments were mentioned.