Key TakeawaysEven a simple understanding of the cash flow basics can improve an investor’s ability to realize profits.There is perhaps one benefit buy and hold investors covet more so than any other: rental property cash flow.Real estate cash flow is a great goal to strive for if you want to realize a passive business strategy.You could argue that there is nothing more investors aspire to achieve in the real estate industry than passive income.

This is the language on the introduction:This report is to serve as a reference for the current condition of the property indicating; all current needs for update or repair, improvements that may be made by the landlord during the current tenants' occupancy.I feel hesitant to sign this.  

All in all, happy with the numbers of the deal, and made a great improvement to the neighborhood.

Also, you're able to depreciate the property's improvements, the loan interest, and the mortgage insurance (req'd with fha loan) to offset your earned income.

Hi Jose,I'll answer the question I think you're asking vs exactly what you wrote.Larger than 4 unit Investment property takes typically 20% down, plus closing costs, and possibly attorney fees.You will probably need cash reserves (as dictated by the lender) and to pay for specific fix ups by a certain date after the closing date (as dictated by the lender and possibly the insurance company) in addition to any improvements you intend to make.Roof age can make lenders balk at lending--so pay attention to that.

Hi BPers, I need help to determine the improvement portion for depreciation on my new construction home. 

As a buyer, I would look at the competing properties and say $1,200 is right.Loss to Lease is effectively a measure of "opportunity to improve", so I love finding properties where the loss to lease is huge, not 2%.

If you did not spend it on improving this property, it is not deductible on its Sch E.

Just get outside and improve your mood (unless, of course, you can't leave your home).4.

. $950 x 4 = $3800 x 12 =$45,600 -35% =$29,640/5% = $592,800 Max Improved Value - 20% = $474,000 is where I would want to be for sure.