Some closing costs, including home appraisals, not deductible for primary residence home loans, become tax deductible as business expenses for investment properties.  When you buy an investment property, the following fees must be capitalized as costs of getting a loan and can be deducted over the period of the loan:

•  Points (discount points, loan origination fees).
•  Mortgage insurance premiums.
•  Loan assumption fees.
•  Cost of a credit report.
•  Fees for an appraisal required by a lender.
•  Fees for refinancing a mortgage.