I could see the house needed work, but there is a good tenant living there who wants to stay and has agreed to a rent increase.

It was 3 years of wheel spinning while he increased his portfolio by about 5 million dollars and another $30,000 in monthly rental income but it was my own fault.

I pay on a agreement 1500 per mo. so I surely don't want to have to increase that payment from a cashflow standpoint even if I could pay more.... and I surely could.

The prices of properties have been decreasing an average 1-3k a month, but increasing by that much in other parts of the city.

Since basis can decrease faster than debt (due to depreciation), the fraction can increase over time.Any sort of active income, such as running a factory making widgets, is also subject to UBIT.

Check this out: Loan Amount: $150,000 Annual Interest Rate: 8% Loan Period in Years: 30 Scheduled Monthly Payment: $1,100.65 Scheduled Number of Payments: 360 Total Interest Expense: $246,232.87 Rent Schedule for the next 13 years ($100 over mortgage payment plus 5% annual increase): 1 $1,200.65 2 $1,260.68 3 $1,323.71 4 $1,389.90 5 $1,459.39 6 $1,532.36 7 $1,608.98 8 $1,689.43 9 $1,773.90 10 $1,862.60 11 $1,955.73 12 $2,053.51 13 $2,156.19 If I apply every extra dollar to principal I will pay off the mortgage in 13 years or 156 payments and pay only $105,127.30 in interest expense...this is a savings of $141,105.57 in interest expense.

If I wanted to raise the value I would- increase income (raise rents, vacancy)- reduce expenses (capital expenses at the time of purchase to reduce maintenance costs?)

There are two ways to increase profits in a company, just as there are two ways to get your RE Income to exceed your expenses.1.

If your buying and fixing up correctly, we have seen our pool of money constantly increasing and gaining momentum.

Total cost 50kRefi after it is tenanted ( appraisal comes back around $100k ) I do all commercial loans so my LTV is 70% which mean roughly I will pull out $67k ( 3k closing costs ) which is an increase of my original cash by 17k.