Or does it need to be added separately?

The $18K rehab costs would be added to basis for depreciation, assuming you did the improvements before you rented the property.

The interior is going to be renovated in the upper ans basement will habe two rooms and a washroom (id be adding the kitchen) We have spoken to realtors in the london area and 3 have confirmed the home will likely sell for 600k as some homes on the same street sold in the past month.

I will be adding this to my calendar! 

@Phat Dao A good use of that extra space we’re you were thinking of adding that gauge could be adding a ADU(guest house or mother-in-law sweet) that will add $500-$1,000/m (depending on the local market) that is my go to to add value to a home if there is extra area to build.

Value is going to be added to this deal by doing cosmetic updates throughout the house.

I’m going to be adding tens of thousands of dollars in updates to the building.

The lender will then use 75% of the projected rent to offset most or all of the monthly payment that would be added to your DTI calculations.

There will be added cost for flood insurance.

And part of me wonders am I trading a 10yr loan for 30 yr loan at the same price, although I'd be adding $100k in assets ($180 cash out minus $80k loan payoff = $100k to buy 2 properties).