@Thelma Bal Best content on Cost Seg, bar none, is @Michael Plaks' posts on the subject.

My budget for the property is up to $200K. 

Thank you for your post.

Please post more info about the deal.

Mine went up as well .

For calculating IRR, use the total cost of acquisition—this would be the mortgage balance plus the 50% buyout equity and any closing costs.Regarding refinancing, assuming the loan under the Garn-St.

By the time I reach 20% equity (likely 3+ years away), my monthly mortgage payment will come down when I refinance, but $600 is a big hit to the numbers. 

The tax savings could be larger than the regular income. 

CA also in the last 30 years really beefed up the protection for fractional TD investors.

The IRS could apply this doctrine if it appears that the series of transactions are structured primarily to achieve a specific tax outcome, such as avoiding taxes.Regarding the 1031 exchange, while in-laws are not considered related parties, the transaction could still be scrutinized due to the complexity and nature of the other transactions involved.