Only presenting the rational behind my willingness to get involved with low income properties so that others(reading this thread after your comment) that may not have the capital that possibly you had to start with, or don't feel comfortable with too much leverage can have food for thought from the other side of the coin.

My understanding is that any depreciation one cannot take against his ordinary income (for reasons such as making >$150k) can be later used to offset any capital gains down the road.

For example, if your furnace is 15 years old, it might make sense to replace it now and figure it into your initial capital outlay rather than be surprised a year from now.

Assessed value has nothing to do with market value or what you should pay.You are buying this property based off the income approach as an investment but generally single family properties use the comparable sales approach for valuation,lending,and appraisal purposes.Local recent sold comps would be a better gauge for current market value than looking at any assessment value.Now you do want to look at assessed value for property taxes.Fighting the property taxes and getting them reduced will improve your yearly bottom line.Make sure the cash flow of the property they are reporting does not include exemptions that do not apply to you or they have been putting off capital costs and maintenance to show and INFLATED NOI.

The fund and each of the partners will JV on each project according to how the capital breaks out at any given point in time.

Financing long-term projects with short-term capital is the classical road to bankruptcy.

Hi everyone, I am looking to deploy a substantial amount of capital into REOs (for flipping) and am curious which segments everyone is getting their best ROI from (lower end homes (20K-50K), mid-priced (100K-250K)higher end properties ($500K or more) etc.

In this agreement, the capital partner holds title and the real estate investor manages the renovations and markets the property.This is a very simplified version and is intended to be a template whereby you fine tune the details with an attorney to correspond with your goals.Once you have a completed agreement by your attorney, you can keep using it over and over again.

Yes, I am doing both, but I'm placing far less capital towards debt, which should get paid off just fine if and when inflation rears its ugly head, and allocating the majority towards financing at these super-low rates.

It is also my understanding that assets contributed to the corporation are contributed at cost basis, but if withdrawn, they are withdrawn at FMV which may create a taxable capital gain for the taxpayer.My understanding may be imperfect, but these issues certainly bear further examination.