Partial Disposition Benefit: In a cost segregation study, components of a property are identified and depreciated on shorter schedules (like 5, 7, or 15 years).

While this guidance provides general steps, it’s not legal advice; an attorney will ensure the process aligns with your specific circumstances.This post does not create a CPA-Client relationship.

Purchase Price:Focus on areas where the rental rates align well with your purchase price.

I was recently sent details about a 20-unit apartment complex that I’m interested in, but the seller's asking price doesn’t align with the numbers I’ve run.

Are there any specific markets or deals you’ve seen that align with my goals?

This includes structural components of the building.

Using a HELOC for the down payment on the second home might be an option, but lenders may require you to wait a few months post-closing on the multi-family before approving new loans.The BRRRR-style approach could work if you can renovate and refinance quickly, but make sure the timeline aligns with your lender’s requirements.

Just make sure to run the numbers to ensure the rehab costs align with your cash flow goals for the rental.

Early on, rents would remain market-aligned to ensure the portfolio generates the income needed to cover expenses, pay investors, and reinvest in expansion.

You should be able to find local builders that will finance the construction component of your new build, however!