We have done the termite treatment which the termite company put chemical to the ground.

What are the tax consequences for the following 100% residential rental situations?

1. seller paid closing costs
2. buyer paid closing costs
3. buyer tacks the closing costs onto his mortgage
4. what is the better sc...

Make ready IE...final cleanup, touchup paint, window treatments, ETC.9.

I'm not a CPA or tax adviser, but I believe it is the same tax treatment.

. / $4,166.67Annual debt service “DS”Revenues:Monthly AnnuallyRental Income$935$11,220.00 (RI)Vacancy @ 8% ($74.80)($897.60)Net Rental Income $860.20$10,322.40 NRI)Operating Expenses:Property Tax- 1800 (this is being challenged currently, but no ruling at this time)Insurance- 1000 (estimate, I will get a quote on this for sure.)Maintenance- 1200 (Estimate)Utilities- 800 (Estimate)Advertising- 100 (Estimate)Total Operating Expenses (*Very Estimated*) = $4900 (TOE)Net Operating IncomeNRI-TOE= NOI$10,322.40-$4900= $5422.50 (NOI)Total Cash FlowNOI- DS= TCF$5.422.40-$4,166.67= $1,255.73Return on InvestmentTCF/ TCO= ROI$1,255.73/ $5,000= .2511 (25.11%)Cash on Cash (Considering- Down Payment, Upfront Repairs, Closing Costs)TCF/ TCO (W/repairs and closing costs)$1,255.73/ $6,500 ($5,000 DP + $0 Initial Repairs + $1,500 Closing Cost) = .1923 (19.23%)My thoughts regarding this deal: I think the asking price is a little high for the property considering it’s age, condition (off of visual inspection from the street level only), location, what limited comps I could find.

We don't all learn best the same way.While you might prefer to have everything in written form, someone else might be more visual and learn better with a presentation like that.

At least then you have a chance of catching most of the problems visually if you know what to look for.

I wanted to buy a property that was listed about $100,000 above FMV, the owner put in $40,000 of window treatments and RAISED the asking price an additional $250,000.

It is simple and cheap but yields big visual returns.

Your contractor or someone knowledgeable should be able to get a good idea from a visual inspection.