Useful Life of a Commercial Property
2 Replies
Reinhard Kurzen
Rental Property Investor from Seattle, WA
posted about 1 year ago
Hello BP,
I just purchased a 26 unit building in Spokane, WA. On the appraisal they listed 25 years remaining as the useful life of the property. Thus I was only able to amortize over 25 years instead of 30. Will this continue to go down as the years pass? If I want to refinance in 2 years will I only have 23 years useful life left? What does the useful life mean and how can I start it over? I plan on putting about 100-150k into renovations over the next year. Is it better to use Capital expenses or repairs of $2500 and under. Thanks!
Bjorn Ahlblad
Investor from Shelton, WA
replied about 1 year ago
@Reinhard Kurzen what year was the property built? Was there a reasoning as to why it would die?
Reinhard Kurzen
Rental Property Investor from Seattle, WA
replied about 1 year ago
@Bjorn Ahlblad , 1908.