You would need an extremely high grossing property under market value on a something like a 5 year lease to profit, and you probably will not profit after startup costs until Year 2 or 3.Do not even think of trying it with 1/2 bedroom apartments or condos nor 2/3 bedroom homes. 

@Clark Harbaugh, Given the favorable tax rulings over the last few years (in particular revolving around trusts and their equaling a beneficial interest in the underlining propery) the IRS has actually been much more lenient (or at least silent) on these issues. 

S&P has had 2 back to back years of returns in the 2x% range.  

I am planning on doing a flip or a build in Phoenix in the next one to two years.

I purchased a home here a few years ago, brand new.

Example of what a tenant might say - this 2x2' stain on 2 year old carpet was already there when I moved in.  

Loan had high terms of 9.5% calculated to 20 years and a balloon payment on the 3rd year coming up this April 1st.

I have wholesaled, fix and flip and I have a duplex that I have owned for 5 years. 

Recapture typically happens only when you sell the property.If you use the property partly for personal use and partly as a rental in a given year, depreciation and other expenses must be prorated based on the number of days it was rented versus personal useBased on the current tax laws and regulations, once you've taken bonus depreciation on an asset, you cannot "capture" additional bonus depreciation on that same asset in future years, even if the rates increase.In the 2024 tax year, the rate for bonus depreciation is 60%.

Vacancy & Risk Management✅ Plan for at least 1-2 months of vacancy per year to avoid financial strain.✅ Understand eviction costs and legal processes in case of tenant issues.5.