If you're earning primarily W-2 wages, interest, or dividends, those attractive depreciation deductions from your cost segregation study will be suspended.Think about it this way: You might spend $10,000-$15,000 on a cost segregation study, expecting immediate tax savings, only to find those deductions suspended indefinitely.Does this mean cost segregation studies are worthless?

Hey y’all just heard about this community and wanted to utilize it to grow more knowledge in how to have real estate help me with earning passive income.

Plus if the pay isn’t roughly commensurate to what they can make earning a 2.5-3% commission, then they’ll just keep doing that instead obviously.

I recently analyzed an asset of vacation cabins - where the seller would earn 23% ROI over a 5 year term.   

So your debt is currently $3000 per month and your property earns you $1000 per month? 

When you pay cash for a $400,000 home and rent it out, your rate of return will likely be less than 6%.You could invest in stocks and earn 7% or better.You could put the money in a high-interest savings account and earn up to 5%.I don't understand why anyone would pay cash for real estate, erasing many benefits that increase the rate of return, while exposing themselves to the risk of loss (turnover costs, bad tenants, capex, etc.). 

That looks pretty bad for your cash flow.

@Apryl Skahill To get your risk-averse spouse on board with real estate investing, start by educating him with beginner-friendly resources that highlight the long-term stability, cash flow potential, and tax benefits of real estate, such as depreciation deductions and offsetting W-2 income.

Let’s talk strategies to help all of us keep more of our hard-earned money!

“ cash flow returns” almost always compare horribly to a simple bank CD after you deduct for insurance, prop taxes< vacancy, capex, prop management (or your personal time.) etc etc etc.