Never took depreciation or upkeep/capital improvement expenses on schedule E but always claimed full rent income.

@Greg Todrank I'm not trying to harp on you, but I do want to stress the importance of improving your processes.

The bank agreed but they are both under the current mortgage.I improved Lot 2 (The home and it's lot) enough to appraise for enough to cover the loan.

I have a bunch of equity built up in a couple of small multi-family properties and I would like to take cash out to do two things: (1) force appreciation by making improvements to currently owned properties, and (2) purchase additional rentals.

Since the home cannot be rented for a year it allowed the year for improvements to drive up rental income.

It would have been added to their inventory, which sits on their balance sheet, at the price that is recorded on the deed.

We definitely have more inventory than we did this summer (good for buyers).

Seller added the following revision for an AS IS sale:"Buyer hereby represents that he has personally inspected and examined the above referenced premises and all improvements thereon.

With the vast influence of BiggerPockets, it would be impossible to deny certain markets have benefitted from never-before-seen appreciation and lack of inventory.

Questions:• I'm not sure how much to hold back for Capital improvement.