@Mike Dymski@Jay HinrichsAccount ClosedMike, Jay, like both of you, I buy based on Internal Rate of Return (IRR) Analysis, not on calculations that only tell you what the current year return gives you.I met a few BP members recently and showed them how large the Returns are and it's quite shocking.

If that wasn't true, it would be considered a partnership which also qualifies.There are a number of components to this new deduction; it is almost a calculus equation in which you need to figure out one part in order to figure out the rest. 

To sum it up, it’s all about the relationship, and two key components to a successful relationship is reliability a

It will depend on the current condition and life expectancy of the property's major components and appliances. 

This is an industry where creativity is a key component in all aspects of how you approach your business.

I also invested in a couple syndications and ventured into international agricultural REI.  

If they do -you can use your plan to do an internal transfer and buy real estate on a self directed platform.

I guess it is a number thing, which leads me to one last question (I promise not to bug you too much):  How do you allocate your time efficiently; is it heavily invested in crunching numbers and finding the right piece of property to invest in, or do you spend more time on the rehab component of the project itself?  

If you're factoring in what the equity build-up is over time, your cash flow, and the amount the property appreciates (be realistic), you can calculate your IRR (Internal Rate of Return) which takes into account all of those factors; not just cash flow.  

I've gotten to a spot in one of Brandon Turner's books where he is talking about the importance of mentors, contacts, and finding good contractors, and it's sparked a bit of an internal debate.