For that reason I built a full-functioning cash flow model taking into account hard money, the mortgage refinance and all relevant operating expenses to assess monthly cash flow.

As mentioned in the podcast, you can carry forward the paper loss, which could offset future rental income or other income once the property is fully operational as a rental.To maximize your benefit, doing the cost segregation study now while bonus depreciation is still at 100% would allow you to accelerate depreciation and take advantage of the full deduction in the year the property is placed in service as a rental.

I have zero stress having the systems in place with the proper people in place to manage my day to day operations.

Most residential real estate developers have a certain operating expense margin they are budgeting for in order to make sure they are hitting their return requirements.

I would love to meet some new members, young or no, whose goals might include a solid cash flow and providing good value to renters who are exploited or poorly treated by unresponsive landlords or large corporate operations.  

should allow you to save for your second deal fairly quickly.Full disclosure: I run a turnkey operation based out of Birmingham, AL—happy to point you in the right direction and answer any questions that come up!

It also makes it harder for other operators down the road--- not your main concern but we all impact each other.What about you and your wife live in the garage unit, and rent out the house for a lot more, at least until all this permitting is figured out.

If looking to scale flips and create systems around it to minimize your time and involvement, I'd highly recommend putting a team in place that can handle the day to day operations. 

They go over a lot of the fundamentals that I completely agree on as a high skill operator in this space.  

So in that same vein does bifurcating assets from operations help?