It represents allocation of the sales price when they sold this property later on.

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

You also must allocate all expenses based on the proportion of time spent, allocating the expenses between your personal deductions and the rental property profit and loss

.$10k STR rent on $1.3m property at 80% LTV  will be negative cash flow when properly allocating for all the expenses.  

By leveraging our financial resources alongside Ron's contributions, we were able to secure the property quickly and allocate funds efficiently for the $25,000 renovation.

I'm hoping investors allocate some of the resources and energy spent hiding in the cloaks of secrecy on being a good real estate operator who avoids claims from arising in the first place as opposed to falsely believing you have greater protection. 

Expect to allocate less time  towards management functions if self-performed or more favorable management fee structures if 3rd party management companies are utilized (which ties back to #1, as well).

It's worth $27k today plus interests and Citibanks estimate of $300k by end of 2021 seems to be the most widely accepted value of what the above 1% allocation over the next 12 months is projected to be worth.

But they will allocate their proceeds so that equity is concentrated in one of the replacement properties. 

You only mention refinancing which is not only done to lower rate, but also can be used to take advantage of runup in housing prices to allocate to other investments that might generate a higher return. and of course selling the property within that pay back period.