Unless you have a clause in the purchase of the entity that clearly makes you responsible for the entity from the day that you buy it(Indemnification) I wouldn't bother with the LLC.Good luck man. all the best!

The building next to yours looks much nicer and has THREE security vehicles parked in front.

It seems like the North Dallas (where all the buzz seems to be) seem fairly far from downtown Dallas.

@Ashly FrassoRenting by the room can be a profitable but complex model.

Thank you so much for the valuable insights!

All the best to you!

The first is that there's no consensus between tax professionals, and the second is that you will not like my personal interpretation.My interpretation is:Until the property is "placed in service" - everything goes into basis.Illustration.You buy a property July 1st.You finish rehab November 1st and put the property on the market.Your tenant moves in January 15th.The property was placed in service November 1st, and it does not matter that the tenant did not move in until the next year.Everything paid between July 1st and November 1st, including interest and utilities, goes into basis.

@Joe MichaelsI believe the new cap ex starts a 27.5 year clock at the time of repairs.

Because the Property Class dictates the Class of the tenant pool that the property will attract.

Moving and buying your first piece of real estate is a lot in the next year!