Here's something from Fannie's website:Gross building area, which is the total finished area (including any interior common areas, such as stairways and hallways) of the improvements based on exterior measurements, is the most common comparison for two-family to four-family properties.

So, you can deduct 1/27.5 of the value of the improvement (not land) each year.

Backing off the one year cash out refi mark has been standard practice for decades, really sets prudent lending practices.

Begin with the basics, real estate basics like text books, RE schools, from there you can look to strategies, the basics and knowing what is acceptable, common practice in your area will keep you out of trouble, which is easy to get into in RE.

Any improvements or restructuring will be a bonus.

Rents are the consideration paid for the tenancy rights, not an ownership right.An option, of any duration whatsoever is granting an equitable interest to title that includes ownership rights, it is a contract allowing a buyer or optionee with a right, but not an obligation, to purchase the ownership rights (the bundle of rights) and at the moment that agreement is made.These concepts are grounded in law as well as in practice and custom.

That area just could not get off the ground ... that is until there was one critical improvement.

But I do often have groups of special needs students come through my business where we help them practice skills to get full time jobs down the road.

How do you think banks think about clause on a practical basis?

Secondly he has improved greatly the value of everywhere he has ever rented at his own expense because he likes to do fix it stuff in his downtime and this property needs some serious updating/fixing which he is capable of.