This choice generally produces the outcome I'm looking for - a renewed lease. 

Since depreciation is used to recover the cost of income producing property, your ability to deduct it requires that it cost you something. 

Our realtor came by and said we could sell for $250K or rent for $2K, which will produce monthly cash flow of $700 after everything.

We produce TV shows and work with some high profile NFL athletes, and found a commercial building that could really make us stand out, especially when meeting with clients.We found an old mid century modern bank in an area of LA near the new NFL stadium (which opens in 2 yrs) and the place has been meticulously taken care of and it's on a very desirable corner lot.

So I was playing with some ideas over the weekend on how to accurately evaluate a commercial shell and so far, this is what I came up with:I can do an analysis on what the building should be producing, based on current market rents in the area, expected expenses and come up with what the NOI should be.

@Sam HanaaClearly the numbers being posted on this thread will never produce positive cash flow long term.

If done well, you may even be able to pull out your cash + profit if 70-75% of the new value covers your prior purchase, rehab, holding and closing cost while still producing positive monthly cash-flow with at least a 1.25 DCR.If the purchase price is $128K, you'd need about $30K to cover your 20% down and closing costs, plus they may want you to be able to show some additional amount in reserves.

Higher priced properties with higher rents will generally produce more cash flow, however at a lower CoC return.

I already own 3 cash producing properties there. 2 have financing, the other paid off.

Income producing property.