All Forum Posts by: Daniel H.

Thanks guys.

Wow so if land was valued at $40,000, there would be no depreciable value.

Thanks for the response.

If I purchase a home for $25,000 cash, then spend $15,000 to fix it up, then refinance at an appraised value of $100,000(just an example), would depreciation be based on the $25,000 plus improvements or would it be based on the $100,000?(appraised value)

The mailing address shown is the property address. I will try to send mail and see if it is forwarded, I had thought of that. I will check the public records also.

I sometimes see people talking about determining how much equity is in the house, any way to find this out without asking the owner?

Thanks for the response.

You would think that would make it easier to get the HELOC since the property is paid off. There has got to be a bank out there somewhere that will do it. Try some regional banks in that area.

There is a house near mine that I looked at purchasing a few years back that is now in pre-foreclosure. I looked up the owner's name on the city website for property values. Where can I find out more info? Is there a way to find out how much equity is in the house and/or how much they currently owe?

I would like to contact the owner and see if he wants to sell. I don't think anyone is currently at the property.

I think your best bet would be to go with the lender who has the current mortgage on the property. Did you contact them yet?

Yes, you are right that lenders vary widely.. In this case it may be my fault for listing everything as repairs when I submitted income statement to the bank. I will follow up with things properly classified.

I don't think I can use another lender in this situation either. Looking for HELOC on this commercial 6-unit property. Pretty sure I will have to use the same lender for the original loan here.

Thanks for the help.

Just wondering how a potential lender would account for improvements done to an investment property. Do they count them against income for the year just like repair expenses, do they not consider them at all, or maybe somewhere in the middle?

Expenses come off of NOI where improvements do not so does that make a difference in the bank's eyes?

I was denied a loan request for a line of credit on a commercial rental property that I own due to "insufficient cash flow". The rent is 4x the mortgage payment and there is more than enough to cover all expenses. There was not much cash flow due to a large amount of repairs/improvements. I classified them all as repairs on my loan application. Would it help to classify the improvements as improvements?

Has anyone on here ever added extra income or not deducted all eligible expenses in order to show more income on your schedule E? You would pay more taxes but it could make the property more attractive to buyers and also make your finances look stronger in order to secure financing in the future.

Thoughts?