The HELOC gets re-evaluated and credit line increased to reflect the decreased mortgage. 1.

Or just have them do a new lease or an addendum to the lease to reflect the new grace period.Tenants aren't grandfathered in forever on their terms.

You or the title company will submit a PCOR that may very well reflect the credit back and automatically increase the enrolled value. 

For all the newbies out there (which still includes me) who are wondering how to do this, I wanted to quickly reflect on what I believe was the single best piece of advice I have received from anyone in regards to how to get into this game the right way.About a year and a half ago, I posted (about the first investment property that I had just gotten under contract, but was questioning if I should go through with it.

For example, if you would be happy with no less than a $5K return, then your max offer should reflect that you will not make less than $5K after completing the deal.Hope this helps clarify some of your questions.

And since the LLC is under both of our names do we have to create two Schedule Es under the LLC to reflect each of our shares and split everything 50/50?

And hopefully the cash deals reflect what's being brought to the table!!

I bought one property for about half price where the rents reflected the neglect.

Therefore, your personal tastes may reflect into your properties.  

CAP Rate should be a reflection of all related expenses and income one could be exposed to on an asset regardless of the existing situation or arrangement.Therefore, the following breakdown is always considered:GOI (All existing revenues generated from the Asset - NOT Pro-Forma)- Vacancy Rate / Concessions (Local Market Driven)- Property Management Rate (Local Market Driven)EGI (GOI minus Vac/PM)::break::Expenses (All existing / historic normally occurring and certain projections)- Utilities - Property Taxes- Property Insurance- Maintenance Reserve Account (normal wear and tear)- CapEx / Reserve Account (life limited replacement items) - Legal Expenses (CPA, Attorney, Tax Reconciliation, etc.)- CAM (Common Area Maintenance items like yard care, snow removal, parking pavement, exterior amenities, etc.)- Payroll and G&A Expenses- Advertising Expenses- Any other expenses related to the Operation of the Asset not covered above EXCEPT Debt Service, Depreciation, Income Taxes and Specific Tenant ImprovementsNOI (EGI Minus all Operating Expenses)::break::Now you can calculate your existing CAP rateYou can also set up another file for value added opportunities that would contain Potential EGI and Potential Expenses which then would give you a Value Add potential CAP RateTo derive your NCF, subtract your Debt Service from the NOI.Hope that helps!