Assuming the only adjustment to basis was for depreciation, there would be a gain of $1,615,750 ($2 million less remaining basis of $384,250), taxed as follows:$19,583 (the excess of $915,750 depreciation claimed over $896,167 that would have been allowable using straight-line depreciation) would be taxed as ordinary income;$896,167 (the depreciation that isn't recaptured as ordinary income) would be taxed at a rate of 25%;$700,000 (total gain—$1,615,750 less $915,750 ($896,167 + $19,583) would be taxed at a rate of 15

My question regards how the lender is calculating income in the debt-to-income ratio based on the existence of the partnership.)If we treat the partnership as a standard business, our DTI is unfavorable:Net rental income: $7600Other income:        $3000Total:                   $10600Debt:                    $ 6000DTI: 57%A DTI of 57% is above their limit.However, since Net Rental Income excludes $1000 monthly depreciation (non-cash expense) and $2,400 interest expense (part of the proposed debt), we were initially told that they would add back depreciation and interest expense, leading to a monthly income of $14,000, and a debt-to-income ratio of 43%, and that DTI would pass muster.The loan went to underwriting on that basis, but underwriting decided that they couldn't add back depreciation and interest expense, since it's a K-1.

We manage many rentals that rent for over the $1400 mark but I will tell you that is not what most folks that call us everyday are looking to spend on their next home here in OKC.  

Places where it's been typical for the majority of tourists to rent privately owned condos and single family homes on an overnight basis for decades.  

": Gee, I hope you aren't expecting a raise from your job anytime soon for just doing the normal every day at work.

However, I’m looking every day for fun when I have five minutes here and there on my down time throughout my day.

At renewal time, you can let them continue the current lease on a month to month basis, if this is agreeable to both sides.

If I worked in an office and drove the truck to work every day in my suit and tie I guess a pick up truck with a leather interior and fancy paint and big price would be ok.

That must have been nice to live right across the street and stroll on over everyday!  

You will be surprised how many people with "real money" are looking to fund deals every day. :)Good luck!