Quote from @Charles Kennedy: 💭 Question for Note Investors:When buying non-performing notes, do you prefer to rework/modify the loan or go straight for foreclosure and property?

Correct but with 1 big modifier. 

The borrower showed us a tax return for 2023 that showed he had paid $2,050,000 for the subject property as this was the acquisition cost listed in the modified balance sheet as part of the corporate tax return.  

Do you make less than $150,000 of modified adjusted gross income?

They stay put quite often in my experience, the bank will modify the loan and typically if I see them on the list again, is when they are a little more motivated.

This post has been modified by the owners of this site becuase they found statements in the post that were untrue.

In US tax law, the depreciable lifespan of an asset is defined by its MACRS classification which stands for “Modified Accelerated Cost Recovery System.”Under MACRS, depreciable assets are assigned to different classes, with each class having a specific recovery period.

.- Losses from rentals can offset other income if you qualify as a real estate professional or if your income falls under the active participation threshold (currently $25K allowance, phasing out between $100K–$150K of modified AGI).- Since you’re 1099, you already file Schedule C and pay self-employment tax.

With the ability to add and modify categories in both income and expenses, I think it could work for both commercial and residential rentals.

The hotel reservation is in the BP room block from 10/3-10/8 but can be modified.