In this example, I didn’t include any CapEx costs and the loan is 75% of the value.LTCWith a LTC structure, the lender is willing to lend funds as a percentage of the underlying asset’s purchase price plus renovation/repair costs (project cost).LTC financing is generally viewed as favorable for the borrower albeit, riskier, due to higher leverage, less debt service coverage, and renovation risk in the form of underbudgeting.LTC = Loan Amount / Project CostsMost often, lenders are willing to offer LTC terms structured as a bridge loans.

Under IRS Publication 527, you can depreciate this 10% portion of your home over 27.5 years using the straight-line method.I am a Certified Public Accountant and I offer bookkeeping and tax services related to real estate.

I agree with BillB. in addition to, you must include in your new lease a requirement for additional tenants.

I have been working on some projects with them but would like more qualified clients on my list.What I am looking forI am looking for long term relationship with clients who want a reliable service working on their existing portfolio but also do bigger rehab projects for small properties.

Hey @Kay Li, Given we are accountants, we cannot promote our services on BP as its against the rules.To help in your search:be sure to find an accountant who is willing to grow with you, and is not too high priced fee-wise.

@Chris Seveney Are you guys servicing the loans yourself, or do you have a vendor that supports this process? 

They offer a background check / tenant screening service, which is paid by tenant.  

People end up abandoning lots all the time because of title issues, sinkholes, ground contamination, setback and other zoning problems, and a whole host of additional problems. 

Does your projected cash flow include debt service and other expenses after the refinance? 

Additionally, the Administrative Relief Adjustment Form 8082 will be used for all other corrections not related to depreciation, which amount to $9,376.