Take what I say about taxes with a grain of salt.As to why I allocate the depreciation to the investors, my philosophy is that the investors are bringing the money to the table so they deserve the depreciation. 

@Zakari Takis  welcome...my suggestion would be a few things...find people who share your vision and business philosophy, eliminates many future disagreements.

I use and highly recommend the "buy and hold" philosophy, as the monthly rent checks are awesome.

This is my philosophy look at their reason and see if you are willing to accept it. 

Obviously the numbers are made up, but the philosophy is the same.

I got a very simple philosophy- you make your money when you buy.

Or at least that is the philosophy.             

I know several other B&H investors in Hawaii that share the same philosophy.

We just follow similar philosophies on investing, learning and networking!

Marie Poe:Just my experiences of course.Everything you said is absolutely valid and, of course, I base my negotiating techniques and style off my personal experience and formal learning as well...my negotiating background is different than most, so it doesn't surprise me that my philosophies and techniques are often different than most