6. INVESTMENT IN RENTAL PROPERTY:

12 Months Ended

Sep. 30, 2011

6. INVESTMENT IN RENTAL PROPERTY:

During 2009, the Company acquired control and became the 100% owner of the joint venture investment MSB Brighton LLC, a multi-unit condominium conversion in Modesto, California. Management converted this property from a held-for-sale to a rental. During 2010, the Company foreclosed on a 14 unit retail property in San Jose, California. Additionally, in December 2010, the Company took control of a rental project on International Blvd in Oakland CA. At September 30, 2011 and 2010, the rental properties are summarized as follows:

	September 30,
	2011			2010
Land	$	2,512,775		$	2,777,183
Buildings		4,525,010			4,201,899
Furniture, Fixtures & Equipment		54,414			12,530
Total Rental Property		7,092,199			6,991,612
Accumulated depreciation		(380,681	)		(264,450	)
Rental Property, net	$	6,711,518		$	6,727,162

Depreciation expense related to investments in rental properties amounted to $116,232 and $107,204 for the years ended September 30, 2011 and 2010, respectively and is included in the statement of operations under Rental Expenses.

Provision for impairment of investments in rental properties amounted to $583,023 and $651,329 for the years ended September 30, 2011 and 2010, respectively.

BELLAVISTA CAPITAL INC 10-K