It’s also a great way to leverage your investment for future projects.If you’re planning to continue with more BRRR projects, consider refining your vendor selection process to increase efficiency and cost control, and ensure your financing is set up to maximize your next deals.If you need any advice on financing strategies for future deals or optimizing STR income, I’d be happy to help!

While rent rates do increase, so do the potential headaches of managing multiple tenants.For example, here in Bryan and College Station, TX, you can get an extra 10% by renting out rooms individually.

Government now can restrict and cap your rent increases 3.

Are you captive to the building HOA for increasing fees?

The rents were at $1000 a door with a potential to increase up to $1250 after some small TLC renovations.When you factor in the price point, lower taxes and lower insurance you have yourself a sure fire cash flow deal.

Are you looking from a more traditional real estate perspective where you're trying to acquire an asset for long term preservation of wealth, tax advantages, to have guests help out with the mortgage payemnts, potentially have rents and home value increase in time with normal inflation, and are okay with the idea of paying some amount out of the pocket some (most?)

Many lenders have similar programs, so pricing can be increasingly similar.

Therefore if you purchase in say September, your current years tax bill will be based on the current years value which may be even lower than what you can achieve with the exemption and on investments the value will be updated according to your ATI and will not be reassessed by the county for five years as well as once it is, the increase is capped to a 15% increase in value which is not common and can be appealed which is less often than many other states.Yes, the effective tax rate comes out to a difference of say 0.5% on personal residence to 3.0% on investments, but I would say handling it the right way up front and budgeting for it in your analysis is better than risking it another way.

So if you want to increase your equity in the market overall by owning more units (ones where you can increase rents annually), I'd consider buying more if you even have the chance to.

I’ll do my best to address your questions:1.Why Do Taxes Increase When Moving an Item from Bonus Depreciation to an Expense on Schedule E?