Right now you can purchase property below market, so you ought to factor in the equity you will be picking up if you buy.

I don't know about the "coming back to haunt you" comment, but I do agree investors should consult with a knwoeldgable CPA on this topic.Depreciation recapture can come into play, but there are several factors to consider such as: You are receiving tax savings today and then repaying with tomorrows dollar (and we all know the dollar will be worth less tomorrow than today), if your current marginal tax rate is at 28%, then the recapture tax rate of 25% is slightly less, and if the gain derived from the building is less than the depreciation taken, you may only recapture some and not all of the tax.

I would be interested to hear any constructive comments.Area Location: Northeast DenverSquare Footage: 1219Bedrooms: 2 Bathrooms 3 Two Levels Style: Condo/Townhouse Financial Information:Comparables: $169.725Assessors: $189,600Bank of America $173,700Average Rental $1050ROI .14 (.65 factor used)Rehab cost maximum $30,000 (should be less)Asking $59,000$1000 Earnest MoneyI am hoping that this will be a quick wholesale deal

Jon,I have assessed the situation you have mentioned and that will be a deciding factor in my decision.

The external factors can cause a property value to go down very quickly.

I would like to start incorporating some nice design into rehabs to enhance the appeal and begin to focus on wholesaling.My interests outside of real estate include rare/quircky automobiles, disc golf (can't play actual golf), and fun runs and marathons.I look forward to working with all of you to make this forum as informative and helpful as possible, and will definitely do my part whenever possible.

A lot of factors like the price of oil and interest rates all came together for one perfect storm and BOOM.

I'm trying not to be discouraged...And I certainly don't want to jump just because it seems like a good deal...I think the part of my equation that I'm not factoring in is this:If I get the home at the rate I hope (60k) and I borrow 80k that will leave 20k in reserve.10k I will keep untouched for unexpected things.

People want to invest not join marketing clubs.And you say this isn't MLM let me give you the definition of MLM:"The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduced to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation.The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing"Sure sounds like what you are doing is MLM to me.

Have you designed and refactored your REI plans to the point where you can subdivide all of the tasks into neat, discrete subtasks/subsystems?