Maybe the property is part of an overall bigger plan, like buying 10 $50k houses and then combining them into one property for $1 million.

That combined with FHA typically has a long closing window sometimes makes it a deterrent for sellers to accept an offer w/ FHA.  

If you combine that with an aging population and relatively low taxes combined with full municipal service, the city is ripe with opportunity.  

Their program really didn't fit my situation as it stands today, but combining it with my other park I believe it is an option. 

My idea: instead of spending $200k - $250k on one multi-family home, what if I buy two homes (a combination of single family, apartment, townhouse, etc.) for $100k - $125k each. 

The new lender is recommending refinancing the first property (which I planned on doing anyway) by basically paying off my original mortgage, combining the two properties under a new loan / mortgage.

Lenders often use the BPO in combination with an AVM in assessing property values for the purpose of different lending products.

But yes, you have to take into account marginal tax rates, and depending on how much paper loss you have you could even move into a lower tax bracket.Due to combination of real estate deprecation and tax credits, I have had several years where I had a NEGATIVE effective tax rate, meaning I got money from the Govt at tax filing time that I never paid in. 

The greatest part about CRE is the combined strength of your team. 

Most people's wealth is a combination of real estate and liquid investment equity in this economy.