OrThat the adjustments made are oustide the underwriting or appraisal guidelines and again, that either the adjustment is modified or that a better comp exists.Attacking an appriaser's judgment will get you no where and probably cause you more grief in the long run.By obtaining better comps or data used to make the adjustments will give you a better chance.

You will have to constantly adjust your approach to stay ahead of the game.

And your scenario implies that you are using adjustable rate financing, which in my opinion certainly detracts from the leveraged scenario given the likelihood of rates rising over the next several years.

Expense79320TOTAL OPERATING EXPENSES36298480107784TOTAL OPERATING INCOME255761572112501CAPITAL EXPENSERoof Replacement25000TOTAL CAPITAL EXPENSES25000NET INCOME (LOSS)253261572112501ADJUSTMENTSTenant Deposit600500-1100Owner Draw-25926-16216-9901TOTAL ADJUSTMENT-25326-15716-11001CASH FLOW:001500

I use the 50% rule to figure my cashflow (adjusted down just a little since I do the management and maintenance myself).

Depreciation taken (or which could have been taken) since May 1997 is taxable as unrecaptured depreciation when you sell the property.If you fully depreciated the property before May 1997, then all your feedback is correct -- your depreciation is an adjustment to your cost basis and is included in your taxable capital gain when you sell the property.Otherwise, if you were still depreciating the property in 1997 and later, then all allowable depreciation (even if not taken) since May 1997 is subject to the 25% unrecaptured depreciation tax.

Hi,even though I really didn't want to, in the end I had to accept a condition of the seller to have adjustable rate on the seller's financing.

It could be a number of things, including (but certainly not limited to) * Loss of a job * Illness * ARM adjustment * Property tax hike * DivorceIn any case, you first need to compile and assess what the most compelling reasons for hardship are.

This way you know your "ceiling" and can adjust your negotiations accordingly to where you want to be.

If things change then you adjust your plans....right?