All Forum Posts by: Tzvi Nussbaum

I recently reviewed my tax return for 2018 prepared by my CPA and noticed that the amount deducted this year for depreciation was significantly less than years prior.  He used the Excess Business Interest Expense form 163(j).  The losses are significantly diminished as a result.  Does this apply to passive investors, active investors, or both?  Is this affected by taking bonus depreciation?  My wife is classified as an active real estate investor while I am passive.  Does anyone have any insight to this?

Thank you Aaron and Alina. So if I plan to do a cash out refi, how long would I typically need to wait before a lender will loan on the property. Would I need to show P&L for at least a year? 3 years? I hope to get institutional financing from Fannie or Freddie.

I recently purchased a 14 unit multifamily property and in the process of doing a major renovation. I fear that I may be "over renovating", but the rents we are getting still make sense to keep the project going. Thus far, 2 units are completed and 5 others in progress. I was wondering if anyone has experience with obtaining a professional property appraisal during a renovation to see if the after repair value per unit is what you anticipate it to be and then using the appraisal value (in this case on the first 2 units) to steer the level of renovation on the subsequent units. My concern is that the property value by NOI may be different than using a sales comparable method. I do not want to end up locking up my money in the property. I plan to do a cash out refinance at the end of the renovation.