It has a bonus room that would be pretty easy to add a wall and door to make a 4th bedroom or office. 

Let me explain my situation, I work for 33k a year plus bonuses. 

When we got promoted or got a re-enlistment bonus, we'd set aside the extra money instead of spending it, and that would go for down-payments.We also bought newer houses so that renovation was not a concern to us, and then we used a property manager. 

Needing some feed back on a 2 bed 1 bath house, 1200 sqft with an added bonus room upstairs.

Planning on purchasing this property to live in at first, but it will become a rental property in eventually.The property also has a bonus room upstairs that is not a legal room due to ceiling height.Rent could be 695-725, but i tried to be conservative.Thanks for your feedback!

If instead I buy the same property for $8MM, then would that bonus depreciation then be $1.6MM?

The townhouse unit I like has 3 bedrooms, bonus room on first floor and also a rooftop deck facing camelback.

@Nick RutkowskiYou may want to consider a contractor agreement where the GC will get a bonus of ____% if completed quicker and under bid also a penalty for each delay and or cost overature excluding change orders

Cost segregation combined with bonus depreciation is huge.A lot easier to 1031 one 100 unit property than 100 individual houses.Apartment rehab often stays below the $2500 de minimis safe harbor per item (because apartment communities don't pay retail) - which means immediate deduction and no future depreciation recapture (i.e. an HVAC replacement may only cost $2400).Some apartment rehab above $2500 per item can be immediately deducted if it does not meet the 20% "unit of property" rules (i.e. replace one HVAC system in a ten unit building).

Always challenge the property taxes.Cash flow is not the only benefit.Tenant is paying your mortgage and paying down your principleTax write off on property taxes and mortgage interestSome appreciation in property value but I do not count on it, it’s a bonus when it happens.