As others have mentioned, you will be able to take bonus depreciation, for certain assets, which won't be pro-rated.When you get the cost segregation study, it will break down the home into several buckets39 year property, 15 year property, 7 year property, 5 year property and land.The remaining assets will be pro-rated when it is placed into service.For example, a building placed into service in January will have a higher depreciation expense than the same building placed into service in November.Best of luck.

Sherman offers higher cash-on-cash returns.Good luck!

A buyer might look at basement square footage as GLA and the house could command a higher price but with appraisals, it doesn't work that way. 

Second issue is that it would be really difficult to cash flow, while paying both notes, especially with one lender in second position (which would most likely have a higher rate, plus points to offset their risk.)Now if you got the property under contract for 75% of the market value, which means you would have built in equity, and willing to personally guarantee (full recourse) then yea it may work out.If it's a good enough deal then you could even bring in an equity partner. 50 percent of a great deal is better than 100% of no deal.Cheers! 

Use a 1031 exchange to sell one or more properties and reinvest into fewer but higher-yielding or easier-to-manage assets, like multifamily units or triple-net lease properties.

Which is expected to have higher maintenance/cap ex?  

—can also be acquired on an all-cash basis, but your initial outlay will be a lot higher, and leasing cycles will be longer and more complex than single-family.

A higher cost basis reduces the capital gain upon sale.10.

If you are building to sell and your profit margins are higher for the larger units, that may be a good argument for building bigger.My rentals are in central and east Phoenix, so we have a lot of young professionals and small families we rent to. 

However, managing multiple LLCs can mean higher costs and administrative work (separate bank accounts, annual filings, etc.).It depends on your risk tolerance and ability to stay organized.