This is my immediate & short term launching point. - Commercial real estate: Long term stability?

Hi All,I'm looking to finance a four unit multi-use property.

I agree with @Jonathan Greene here that the first step is thinking through what to do with the primary residence - you might try this tool that I built a few months ago to analyze whether you should keep or sell the primary residence! 

This will clarify and reinforce what you are reading.

But this may just be the tenant and not have anything to do with THD per se and may not be the case every time. 

This is not something you will get online you need an attorney to draft documents and it is just a matter of whether you draft them or their attorney drafts them

     Firstly, this post is for anyone and everyone who hasn't had the opportunity to properly introduce themselves in the BP community.

What materials do you want to use? 

If you are cash poor, and can recoup cash from this transaction, it will give you some ammo for the next deal that is going to come in the next 12-18 months.If you were using the space, that would be different, but if you're looking to rent it out, and are stuck without a tenant, you become even more cash poorGood luckGino

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.