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Hi @Drew Sygit, thanks for your response.You shared some good insight, particularly about the classes of tenants that would push back against the strategy I proposed originally.

Originally posted by @Mayer M.

I had just mastered the original deal analysis and was getting comfortable analyzing deals.  

Originally posted by @Jacob Trogan:@Mindy Jensen please lift my ban, also please let me know how to avoid this I did not copy the same message Hi @Jacob Trogan.

It's not as simple as homes that were burned being rebuilt and original owners returning to them.

Dachtera who introduced prepaying the loan with a series of $3000 lump sums every ten months in addition to the regular monthly payment of $632.41.  

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

It was originally listed at $599K, but I was able to negotiate it down to $495K.I connected with my GC, shared the pictures, and he estimates the rehab costs to be around $80-85K.

Here is the chart of VA 30 year fixed rates:  https://fred.stlouisfed.org/series/OBMMIVA30YF   You will see that current VA rates are right around around 6.5%.