In 2021 we bought the building for $1.5M using private lenders, pushed the occupancy from 50% to 80% occupancy and it appraised for $3.125M, allowing us to pay back the private mortgage.Right now, we are in the predevelopment process of design and piecing together the capital stack for the redevelopment deal, which will be made up of historic tax credit equity, RestoreNY Grant, DRI Grant, etc.

Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range).

Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range).

If the house is listed as-is, there won’t be much room for negotiation (ie. seller concessions/credits), but you can offer a price that factors in the rehab components.

Double taxation would be when you have to pay US income tax and then also Canada income tax and you don't receive a credit for your US income taxes.

Generally, the properties that benefit the most from a cost segregation study are properties that are remodeled, expanded, purchased or constructed after 1987, the year in which the Investment Tax Credit was enacted.

As mentioned seller credits are the best path as title insurance and taxes are pretty much fixed.

Credit score. references..

I did hear back from TrueBooks and they had my return ready for me to review, but there was a tax credit missing, so we’re back to waiting for them to make corrections 😫 

I usually work with my local credit union where I have developed a relationship over the years.