Rehab or none for taxes

[Tim Lee]

If the cash on cash return is the same for 2 properties on the market, but one needs rehab and the other does not, which is better for tax purposes (deductions, depreciation)?  Sorry if this is a very basic tax question!  Thank you!

[Eamonn McElroy]

The holistic view is important.  There are non-tax considerations, especially so in the current environment.

I'm hearing from my clients that it's very difficult to get contractors on the job and they're charging an arm and a leg because they all have an incredible backlog of work.

In the current environment, I'd say the less risky path is to acquire a property without deferred maintenance and do a cost seg if it is beneficial.