It allows a substantial portion of the asset's cost to be deducted in the first year of service.In 2023, the bonus depreciation rate is 80%.In 2024, it decreases to 60%.In 2025, the rate further reduces to 40%.COST SEGREGATION:Cost segregation involves dividing a property into its individual components for tax purposes.Some parts age faster, like carpets or paint.Your CPA can use this info to more accurately depreciate elements of your property leading to potential tax savings.BASIS:Your basis is the initial price that you paid for your property, including any expenses or improvements.Knowing your basis is crucial for tax purposes, as it's used to evaluate depreciation & determine the capital gains or losses if/when your property sells.LAND VALUE:This is how much your land is worth without any buildings or improvements.Land doesn't get old like buildings, so you can't depreciate it.

For your initial investment, focus on finding a good property without the added complexity of an LLC.

That’s why this tool breaks down various components like cash flow, principal paydown, home and renovation appreciation, initial equity, and depreciation for potential tax savings.

When it comes down to it, let’s say that the child support income is less reliable than you initially thought, and you decide to evict a tenant and collect the balance due.

Since the property has increased in value due to your rehab efforts, you can often refinance for more than what you originally paid, recovering your initial investment.Repeat: After refinancing, you've effectively used none of your own money, but now have equity in a cash-flowing property.

Use this guide to conduct initial searches yourself, narrow down the list to your top three properties, and then engage a title company to perform a comprehensive search on those shortlisted properties.

The initial open house seemed to have about unusual turnout.  

If so, any initial thoughts or experiences to share?

You’ll find that many time a property owner will initially reject a proposal on;y to come back 6 months later wanting to make the deal.  

Initially started local, when market too high locally, researched fastest growing markets within driving distance, invested there.