The home uses 2 natural gas heaters (dyna-glo 3000 BTu), house was built in 1950 (older homes used these gas heaters as a heat source in the area) and is in the upperclass area where newer homes have been built and continue to be built ( which newer homes have central heat) , I just had the appraisal come back to the lender is saying that “” Appraisal stated The heaters aren’t normal for the area this is a comparable item The subject property doesn’t exist the area and/or comps used” so the underwriter won’t approve the refi , what do you guys think my next move should be?

Leveraging where I could.Take advantage of this high market and put your money into an asset(s) that is valued as a business and not subjected to the sways if the market.It will also make your life more manageable with a w-2, free up a lot of $ and reduce your tax exposure as you raise those kids.Locking up all of that cash makes that $9-10k not as appealing for me.

Here is an excerpt from an article on the subject that I believe breaks this down fairly well:Gain, to the extent of the depreciation claimed that exceeds what would have been allowable under straight-line depreciation, will be recaptured as ordinary income, and, thus, taxed at rates as high as 35% in 2003 and later years (ordinary income rates), but the amount of excess depreciation subject to recapture may be less for certain low-income housingGain, to the extent of the depreciation that isn't recaptured as ordinary income, will be taxed at a rate of 25%.The balance of the gain will be taxed at a rate of 15%Example – In January 1986, you paid $1.3 million for an apartment building (not a low-income building), of which $1 million was allocated to the improvements.

In order to gain trust you have to be a subject matter expert.

  " 01/08/2020 After additional consideration, based on minimal fenestration and basic finishes; subject and comparable are revised to Q4" So if I upgrade the finishes I can hope for Q3?

Using all/most of rental income would not be reasonable and doesn't make sense since by converting passive rental income to active income you will subject most/all of the income to SE tax.

In this case, The owner has an existing mortgage, So my attorney will be structuring a "subject to" type of finance deal.

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

for Ex: ARV(.7)-repairs-fee=MOATo find the ARV of the subject property...

Thank YouHi Justin, commercial lenders will be looking for the following but subject to lender and product-specific: (There are niche lenders)Investor Only - loans to Individual, LLC, Corp and Limited partnershipAppraisal of propertyUS or perm resident (some will lend to foreign nationals at 65% LTV and higher rates)3 mos PITIA and closing costs (some will use loan proceeds for this if within LTV thresholds) 3 mo bank statement for proof30-day ownership seasoning on refinancing (some 30 days to 90 days)No tax returns, DTI calculations or income qualification (most)LTVs up to 80% (some sweet spot is 75% for cash out)DSCR 1.0 -<1.3 (some will look at this but some won't sweet spot is 1.2)Credit 650+ (credit will impact rate and LTV)Min Property Value $75K (Higher min in certain areas)Lease or unleased (must be rent ready .. rate may vary)Min Loan Amount (lender specific rates will vary on amount)5/1 ARM, 7/1 ARM, and 30-yr fixed-rate structuresNo sourcing or seasoning of funds (some will ask for 30-60 days seasoning)Must own primary home (lender specific some do some don't)