These structures are significantly more complicated than a typical 1031 Exchange structure and there are inherent risks involved in the transaction, some of which are discussed below.

Typically those purchasing cash aren't inspecting every home, they're walking it or having their go to GC walk it and already know what they see that may be a concern. 

Golan,There are typically two reasons why a property listed on the MLS hasn't sold: either it’s overpriced or there’s an issue with it.

These deals typically require larger cash outlays (50k-100k) per deal minimums.

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%.

@Polat CaglayanI've never seen a formula but here is a general rule of thumb for multifamily:The class of an apartment refers to the quality of the building, which can be determined by a number of factors, including age, location, and condition: Class A: These are the highest quality apartments, typically built within the last 15 years.

Understand Realtor (Agent) Fees- In Germany, real estate agent (Makler) fees are typically paid by the buyer and can range from 3-7% of the property purchase price, plus 19% VAT.- These fees are due at closing and are part of the overall transaction costs.6.

------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Typically, most cities allow for 30 day minimum rentals.

They're not typically the highest ROI, but if you are facing a large tax bill or are having trouble finding a replacement property within the 45 day timeline, a lot of our clients will identify a DST as a backup.