Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

That may allow you to save for another property faster.

Many mortgage shops do NOT allow their loan officers to also be RE agents on the same transaction to much of a conflict of interest. 

They are farily easy and do nto require much to get started and the Max LTV is going to be 75% but I have seen some exceptions to 80%.Rates are subject to a few thing like loan amount, property type, number of units, credit score and downpayment.DSCR allows you to purchase with No employment and No tax returns so its a little easier. 

If I assume a 1.25 ratio, this scenario would allow me recover more capital than a conventional mortgage.Please let me know your thoughts.

Hoa does not allow us to cut the tree though.

I also have a lender that has a loan product that will allow you to put $0 down on a home with an ADU that would add another rentable space to get income from.

@Manoj Mathew Is this allowed in the PPM-legal documents that your funds can be used for different assets/projects than were defined? 

Cash Out RefinanceThis will allow you to pull a portion of your equity and will replace your current mortgage (assuming there is one).

Inside mount every time (unless your windows do not allow for it).