The cost basis includes:Purchase Price: The amount you paid for the property.Renovation Costs: Add the cost of improvements and remodels that significantly enhance the property's value.Closing Costs: Certain closing costs related to acquiring the property (like title fees) can be added to the basis.You will then allocate the total cost basis between the land (which isn't depreciable) and the building (which is depreciable over 27.5 years for residential properties).If you're unsure about how to allocate between land and building, you can use the allocation percentage from your property tax records or get an appraisal.This post does not create a CPA-Client relationship.

I am thinking about actively trying to grow my investment portfolio and use my existing properties as leverage to acquire more properties.

In every step I must fully disclose what I am buying and selling, i.e. in this case an equitable interest (the right to acquire title upon specific performance under the terms of contract).

Purchase price: $130,000 Cash invested: $33,000 Sale price: $225,000 Contributors: Peter Vekselman We acquired a home on Old Hickory Blvd, Nashville, TN, on 4/12/2024, for $130,000.

In Columbus, Ohio, they acquired a local property management company and ran it into the ground.

I initially viewed it as just a means to buy a home, but I later realized that leveraging allows you to acquire more properties without needing significant cash upfront.

My wife is also part ofa LP/GP (where she is the asset manager) that acquired a value-addapartment complex in Houston, where the renovations are now complete, and theGP is in preparations for the refinance.We are currently working on further expanding ourlocal portfolio and are planning out our next larger acquisitions.

There is an opportunity to acquire a medical building ( owner is MD who sold business to a Hugo MSO two years ago and still working part time ) at 8 cap NNN lease.

But if it boosts the value of the property because we acquired these permits I could see it as worth it.  

In general, if you are in Philly, know Philly and take the steps to learn how to smartly invest and create a strategy, you can acquire some good opportunities.