So are you really saving anything?

I’d say a save MINIMUM would be if you could earn that 5% return with 8 months of rent it’s better than the bank.

Quote from @Melanie Baldridge: The tax benefits of bonus depreciation can lead to massive savings but losses won’t help one bit if you can’t use them.Before you buy a cost seg, you need to know the rules:Tax all starts with the types of income.1.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

I saved some money and decided to pull the plug in April 2024.

Definitely make those assessments during inspection or prior to making an offer if you can to save yourself the time. 

After arrival they're disappointed to find it's not a private bedroom, which leads to disgruntled guests that search for way to get a refund and leave bad reviews.

Pay a little now to do it right and save thousands later...Good Investing...

Are you vendor direct could be a lot cheaper on countertops, and could save you money..

However, I'm not sure how to do that with limited funds saved up.