In digging into the details through public record searches I find out that he has had 3 evictions, several drug convictions, and a violent crime.

Section 179 allows immediate expensing of assets, but the deduction is limited to your taxable business income.If your net business income (before the deduction) is only $16,962, then that’s the max you can claim in the current year—the rest carries forward to future years.The $18,308 total includes both this year’s deduction and carryover depreciation from last year’s furniture.Why This Matters for You:Your lender wants to see $19K on Line 13 as an add-back for cash flow purposes.Your CPA can’t legally put the full $19K if your business income limits the deduction.However, reclassifying some expenses (like moving office expenses into capital assets) could increase your taxable business income, allowing more Section 179 deduction this year.Discuss with your CPA about reclassifying expenses (e.g., reducing "office expenses") to allow more Section 179 depreciation.

I'd love to chat with someone that has made the jump from a SFH portfolios into bigger commercial investments.

I need more adviceJust now I suddenly had an idea, the land left by the LA fire and SB-9 (SB-9 allows single-family residential lots to be split into two lots)Is this a good opportunity?

I'm curious to dive deeper into the Santa Fe market and would love to learn from those with local experience.

For the second property, I would expect to have to put money into it in some fashion.

To put this into context: CA has more than 20X the homeless MN has. 

Long-term, look into refinancing once property values increase to lower your interest rate or pull equity for your next investment.Good luck!

Generate a comp set in Pricelabs and you can go into finer details on what others are charging.

Many of those items are desirable by all guests, so I'm not convinced that you have to dial it in to one category at the expense of others.