Plus, it’s easier to learn and perfect your processes on cashflow properties because they provide an income cushion for any mistakes you might make.Looking at the Greater Toledo market, there are obvious cashflow areas, but what about the appreciation spots?

JADU requires owner occupancy (ADU does not require owner occupied) and get even worst valuations than ADUs (which already get bad valuations in CA).  

A reserve is unnecessary, but I still keep around $15,000 - $20,000 in my account.The point is, that you should sit down and assess your finances to determine what the worst-case scenario may look like, how much you would need to cover it without impacting your life, and whether you will need to build a reserve.

@Leo CuomoRecommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

Any advice or tips on taking over a lease would be greatly appreciated - specifically around questions to ask before close, mistakes, and best practices.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.PM us if you’d like to discuss this logical approach in greater detail!

In worst case scenario, can I retroactively file it in a few years for 60% bonus depreciation for the cost segregation I did in 2024? 

Let me just stop you before you make a big mistake.

The next best time is when you decided you want/need to sell it for business reasons: current market is favorable, you have a better investment opportunity, you have an offer you can't refuse, and so on.The worst time to sell is when you were waiting to sell due to tax considerations, and now you can't sell anymore.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!