It’s a balancing act, and sometimes the numbers don’t always make sense.

In this approach, the taxpayer calculated that the cost to construct a new building (say, $300 per square foot at 2,000 square feet, totaling $600,000) should be allocated to building and the remaining balance of the acquisition should be allocated to land.Rule of thumb method: Some taxpayers use a predetermined percentage (such as 80/20 percent, 70/30 percent, etc.) for improvements and land.

A six-month supply is typically considered a balanced market.

Equity is great on paper, but it may not mean much when the first position balance has grown exponentially due to accrued late fees and penalties and the property is selling for maybe 70 cents on the dollar at auction. 

There are two distinctly different collection strategies you can pursue:1) Collections Company: there are several that ALL they do is pester the debtor for payment with calls, texts, emails, letters, etc.2) Collections Attorneys: they will get a money judgment for balance owed and then pursue garnishment as necessary - including garnishing any state tax refund (if the state allows).Both will take a percentage of what they collect.

Sure there are people who have done it but like Joe mentioned above is why your rate on HELOC is probably higher than your first mortgage so you'd only do it if your balance is really low and near the end of your term anyway so you're just getting it paid off quicker (like the last 1-3 years of payments left) becaues you want to get ride of the monthly payment and improve your cashflow now versus later.

Hi Austin,I would recommend you consult a Broker that specializes in buying and selling profitable businesses.From my understanding balance sheet is key in the due diligence process.

I had one were my PM calls me its in INDY cold winter they just had baby cant  afford the rent and heat just take no payment for 2 months then they will add the balance any pay it off.. well of course after 2 months they just left  LOL..

$230k Purchase Price$225k Balance$25k+- in renovation materials.

If I let them leave with a balance I will never get paid.