Asking in the correct forum will get a better response.Read the RULES!

Calling this cash flow is correct, but also causes confusion when you shift to a tax discussion.

If you didn't budget your rehab correctly, and don't have access to more money, you will be stuck (this is also true if you buy with cash without any excess money).  

Yes, there are bad areas and appreciation probably won't happen...but rents are not declining, there are great tenants if you screen correctly, and even the C neighborhoods generate great $.

And those also only have a limited ability at best to generate a balance sheet, which you generally want to include on a 1065 return.came here looking for answers to exactly this question, and David is correct re: why.

Asking in the correct forum will get a better response.Read the RULES!

This is a good note though, and something as a piece of the corrective measure. 

If done correctly, it is for liability purposes.   

Am I correct? 

So, the broker will usually investigate and correct an agent who isn't operating as they should. 6.