Interest rates are NOT high right now.

Most lenders that I work with give Wholesale Rates (vs retail rates when you go directly to a lender). 

We raised $4.5 million in equity and got $4.5 million in fixed rate debt from Freddie Mac at a 5.85% rate.

Recapture typically happens only when you sell the property.If you use the property partly for personal use and partly as a rental in a given year, depreciation and other expenses must be prorated based on the number of days it was rented versus personal useBased on the current tax laws and regulations, once you've taken bonus depreciation on an asset, you cannot "capture" additional bonus depreciation on that same asset in future years, even if the rates increase.In the 2024 tax year, the rate for bonus depreciation is 60%.

@Jaren Taylor, not sure if this is why you talk about raising all cash, but given most deals are trading in the 5% cap rate range, and agency debt is 6.5% while balance sheet debt is closer to 7%, I whole heartedly agree that all cash is the ideal capital structure for many properties today, if your goal is to maximize overall returns for your investors.  

@Eli Fazzo The 6% rate is a bit of a misnomer. 

The only issue is the interest rate is 7.125%.

Don’t chase rates.  

Nobody wants to be around people like this, so I’ve had to lower my rent drastically and have a high turnover rate here.

Quote from @Brad Kremer: Hi everyone,I own a cash-flowing duplex in Austin, TX, that I bought 8 years ago when rates were considerably lower than they are today.