Depreciation will continue to provide tax savings for years to come, of course.Appreciation isn't cash earnings, of course, until the property is sold, but it does factor into the overall wealth building opportunity in real estate investing.

@Jacob NevarezGeneral red flags include many days on market (60 days+), few photos available online, under contract & reactivated multiple times, and no price drops if it has been on the market a while.

I do get a lot of “push back” from both real estate and non real estate people on it due to the negative (sometimes earned) connotation that comes with it.If you made it this far congrats.

Hopefully you have that HELOC money earning interest for you in the mean time.

The hourly wage Id earn on that after paying expenses and taxes would put me at half the median income for my metro area.

You will need an Accountant to help figure out the EBITDA or Seller's Discretionary Earnings(SDE) for you and compare to the Tax Return to make sure it all looks good and makes sense.

So for us in the bizz it worked great those were high earning years for me so I bought what 3 to 4 million of them and got 1.5 to 2 mil deduction off of my top line income.

What kind of hold period do you need to achieve the 16% IRR  while you are earning the 7% monthly rate?  

He's also a very good operator from what I've know and seen as he does share content online (walkthroughs of the aftermath of fires at his property, etc).

Then when you get ready to retire, if rates have come back down and you want to "earn" more cash flow by getting rid of your debt, have at it.