.); Appraisal (Jan 2025): $1.057MQuestion: For cost segregation / accelerated depreciation, should depreciation be based on:1) Only the ADU build cost ($120K)or2) Overall property basis, excluding land, using the ADU’s square-footage percentage?

But both times, the hard money lender still calculated the LTV based on purchase price minus credits, even though the appraisal came in much higher.Example: $260k purchase price, $10k credit → lender used $250k for LTV.I’m curious — how do other investors handle this?

Pay structure is on the base rent only and also on the initial term. 

5️⃣ Any red flags unique to 44109 I should diligence further (insurance, taxes, tenant base, etc.)?

Hi All,I am a 29 M based in Manhattan looking to purchase my first investment property in 2026.

Because if that’s the case, it completely removes the incentive to:• negotiate distressed deals• buy from inheritances / motivated sellers• create instant equityWhy would an investor spend time negotiating a $80K property down to $50K if the lender then says:“We can only lend based on the contract price.”That seems to defeat the whole point of finding deals.What I’m trying to figure outAre there DSCR lenders that will actually lend based on appraised value (or at least closer to it), rather than forcing the purchase price to be artificially higher?

The IRS will treat the property as mixed-use (part rental, part personal).So you’d typically allocate based on units or square footage.

The HELOC or cash-out gives you the down payment and closing costs, then the new purchase loan is still written against the new property based on its own price and terms, not as one blended loan.

Because the home was primarily used as a personal residence and only a portion was rented, depreciation and bonus deductions generally must be allocated based on therental portion and the time it was placed in service. 

I am with a Property Management company based out of West Palm Beach and service all of Palm Beach County.