TI covers you forever, not just during your ownership, so if a matter arises that was from a previous owner and claims are made against any future owner, your policy covers you in the chain of title.Not obtaining TI exposes you to risks of passing good title to future owners, any claims made during or before your ownership, you'll have to defend.

In my area almost half a condo building is in foreclosure and none can be rented as that's the association restriction.Are you also factoring in:InsuranceProperty managementVacanciesMaintenanceIf you aren't sure of the costs then 10% is a good number to use for pm, vacancy, Maintenance.Plug all those numbers in again and see how it looks.Also you might consider going a little further out for a SFH or multifamily.

It sounds like you got it at a good price too, just make sure the numbers still work after you factor in repairs.Good luck and let us know how we can help!

Closing costs on both the sale and purchase also factor into the calculation.1) purchase price plus your closing costs is your initial basis.purchase price $100,000.00purchase costs $2,000.00initial basis $102,000.002) depreciation reduces your basisvalue of improvements $80,000.00annual depreciation $2,909.09depreciation after 10 years $29,090.91basis after 10 years $72,909.093) closing costs on the sale reduce your net return from the saleselling price $150,000.00selling costs $3,000.00net selling price $147,000.004) net selling price less your basis is the total gaintotal gain $74,090.915) the gain is now split into unrecaptured depreciation and capital gainsuncaptured depreciation $29,090.91cap gain $45,000.006) And the tax is computed on eachrecapture rate 25%cap gains rate 15%recap tax $7,272.73capital gains tax $6,750.007) add them up to get the total tax billtotal tax $14,022.73Do notice that each year you had a deduction of just under $3000.  

Thanx so much forever grateful

Thank you Darren.Yes, defimitely inderstand that the rule is not by any means the only determinimg factor in whether a deal will make sense from am end-buyer's standpoint.

So my question is, can i expedite that process in any way and talk to anyone in particular who can allow me to negotiate directly with the bank or do i really just have to wait forever until it gets listed?

The P&I is assuming 30 year fixed at 5% and I also factored in part of the down payment that we are utilizing a HELOC for.

You're a smart guy partnering with someone with a little age for the credibility factor.

Just because it's cheap doesn't mean it's a deal.If you have experience with complete rehabs, you should look a little closer at the factors mentioned above, such as the neighborhood trends.