Closing costs on both the sale and purchase also factor into the calculation.1) purchase price plus your closing costs is your initial basis.purchase price $100,000.00purchase costs $2,000.00initial basis $102,000.002) depreciation reduces your basisvalue of improvements $80,000.00annual depreciation $2,909.09depreciation after 10 years $29,090.91basis after 10 years $72,909.093) closing costs on the sale reduce your net return from the saleselling price $150,000.00selling costs $3,000.00net selling price $147,000.004) net selling price less your basis is the total gaintotal gain $74,090.915) the gain is now split into unrecaptured depreciation and capital gainsuncaptured depreciation $29,090.91cap gain $45,000.006) And the tax is computed on eachrecapture rate 25%cap gains rate 15%recap tax $7,272.73capital gains tax $6,750.007) add them up to get the total tax billtotal tax $14,022.73Do notice that each year you had a deduction of just under $3000.  

Also notice that they are not appropriate for SFR's.http://www.propex.com/C_g_capvs.yld.htm

If you have the borrower's SS# and loan #, that may be enough to generate the payoff demand.If the senior lien goes into foreclosure (after the notice of default is filed), I find the foreclosing trustee services to be better (and faster) than the lender at dealing with successors-in-interest.  

I'd explain your dilemma, ask if it will be a problem complying with a no smoking policy, then maybe compromise if they say they won't stop, like you'll take it month-by-month with them, but if there are any complaints about their smoking or it's causing problems where other units feel they can smoke, too, or preventing people from living there to avoid the smoke, then you'll have to give them notice to leave, no matter how much you'd like to accommodate.  

The point of this post is not how I eventually became OK with the concept but rather a realization I had after many discussions with friends, family and colleagues and a recent event (more on that in a second)What I noticed is that the most confused were people under 40 and in urban areas (I live in Los Angeles area).

I've noticed that nearly all of the blog posts on wholesaling are a couple years old.I'm sure that wholesaling is still a great way to start. 

Give existing tenants a proper notice (30 to 90 days) that you will no longer be accepting payments at the PO box for security reasons and give them the preferred payment method with step-by-step instructions.

I fixed up my 4plex and it became somewhat contagious, I noticed some other owners make a few changes. 

I was there last week doing some work and I did notice some dark colored dog hair along with the yellow lab hair on the white tile. 

Are there any discounts that are actually noticeable that apply to rentals that you know of?