Thanks for your help in advance I’ve been really over thinking this aspect and want to get it squared away prior to purchasing any properties in order to not get ahead of myself.

Hello,How do you guys handle depreciation when the asset in question fails prior to the years allowed to depreciate.

Under prior regulations, if you bought a building and replaced the roof you'd be depreciating both the old and the new.

Yes it was there prior.

It could be possible that it was turned into a three family prior to the existing zoning laws that prohibit the three family use for that area.

I was unaware of reality of this prior to purchasing the vr, I thought it would be more passive (because I was using a management company).....but I learned quickly it was a business (I was always thinking how to increase income, decrease expenses, reposition, etc.).

Will it be difficult to secure 3.5% down financing on the second home since I will have gotten a mortgage loan a year prior? 

@Hunter Waterman I've found that for banks that hold onto their loans (portfolio), they vary widely in their policies and suspect you can find one that will do a HELOC on top of an existing 1st mortgage from another bank - though whether you like their max LTV (i.e., maximum allowable LOC) is another question entirely.If you're going with a more traditional bank / institutional loan that likely resells the loan on the secondary market, you'll have a much harder time doing anything creative or "outside the box".

I’ve been concentrating on figuring out what areas of Cape to concentrate on prior to pulling the trigger on something.

Jeremy, Most commercial policies will have a coinsurance clause, but it is not an issue if you can get it waived.There are several options my KS investors use for larger complexes.