For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

Given most BRRRR properties contemplated in these forums involve properties with similar pricing attributes, why aren’t more investors taking advantage of the 75% LTV component of construction to permanent loans if Lenders are offering it?

Before you make any commitment, have a clear understanding of what happens when projections are missed, budgets are broken, and unexpected items occur.

An interest rate cap is essentially an insurance policy on a floating interest rate loan.This caps/limits the maximum interest expense exposure for a borrower using a floating-rate loan.Lenders also benefit as they can require an interest rate cap at a rate threshold that helps ensure the borrower can service interest payments comfortably, limiting the risk of non-payment in a rising interest rate environment.Floating interest rate debt has 2 components:✔️ Benchmark Index✔️ SpreadBenchmark Index + Spread = Total Interest RateThe interest rate cap will set a maximum threshold for the index used.Let me know what questions you have about interest rate caps below!

This approach would allow you to preserve capital for potential future investments or unexpected expenses.Property Valuation and Equity: Given the high property valuation in Los Angeles, it's understandable that pulling out equity for another property might be challenging in the short term.

Have you heard that Detroit stood out as an unexpected frontrunner, registering the highest year-over-year home price growth among the metro areas analyzed in the report and surpassing Miami for the first time in 16 months.

In fact, I'll probably be wrong about a lot of it, and unexpected factors will inevitably enter into the mix.

For contractors, ask for recommendations, get several quotes, and create a realistic budget with extra funds for unexpected expenses.

A successful partnership has the following three components - Experience, Money, Time.Will the other one or two partners bring experience?

Focusing on learning the process and components of it.