Have you done something similar?

Long term buy and hold RE in good locations is probably one of the lowest risk investment vehicles IMO, similar to blue chip aristocrat stocks except even less risky because even long-established companies can go out of business but real estate very, very rarely ever goes to zero. 

Quote from @Ian Ippolito: Quote from @Michael Plaks: Quote from @Ian Ippolito: Quote from @Rud Sev: 3) Unless you're doing a 1031 exchange  at the end or similar tax structure to defer taxes, you will have to *pay back* all that depreciation benefit at the end (on sale...which for you is in 5 years)  via depreciation recapture.

How hard is it to get about 4 homes similar to the one you will sell and look at what they sold for? 

I’ve seen something similar with a friend in San Diego, who bought what he thought was a legal duplex.

Similar to student housing.  

If you’re based in the Bay Area or have been in a similar situation, we’d love to connect and hear about your journey.

@Garrett Brown Thanks for taking the time to share your insights and experience with a similar situation.

Also any other similar firms to BAM that you are investing in for the future.

Your LTC leverage is also very similar to a bank construction loan but between origination fees and interest charges you will incur  ~$20,000 more in finance charges during the life of this renovation project.