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?

I write several proposals and can tell you it is not a good idea to follow the same formula for all deals, just like each building/business is different the proposal should be as well, what I have noticed is that you can make a guideline for a "type" of deal (bulk reo, commercial office space, condo, etc) but not a uniform template, you will find yourself spending more time making adjustments to the template than actually writing it.

Given the refinance risk, would it be better or less risky to go with fully amortized, but adjustable rate mortgage (with rate cap) rather than a fixed rate mortgage with a call?

Just having a judicial process for seller financed transactions would cut out most of the fraud and abuse and a judge could use several tools to adjust the transaction to be compliant, fair and equitable.

Just don't see how i can be liable when anyone can adjust the setting on the water heater.