A post on recapture.People are concerned about recapture when they cost segregate their improvements and for good reason.Recapture is real, and those deferred taxes will need to be paid.But fear not!

If enacted, these changes would bolster real estate valuations and enhance returns for investors.How Real Estate Outperforms Under Different ScenariosIf Interest Rates Rise (Higher Inflation):Treasuries: Medium- to long-term bonds lose value, potentially resulting in negative returns.Real Estate: Higher inflation leads to rent growth, boosting net operating income (NOI) and offsetting the impact of higher borrowing costs.If Interest Rates Fall (Cooling Economy):Treasuries: Bonds appreciate in value, improving returns.Real Estate: Lower rates drive cap rate compression, significantly increasing property valuations and returns for investors.Conclusion: Asymmetric Risk-Reward in Real EstateWhile Treasuries offer a safe haven, they also come with limited upside and potential interest rate risks for medium- to long-term maturities.

Consider increasing rent, refinancing, or switching to a mid-term rental to improve cash flow.

So I do better improved synthetic felt.

Incremental improvements all adding up to a significant improvement. 

On paper, that's a 88% return before depreciation (can't depreciate land, but you can do a cost seg on the septic and other improvements), appreciation, etc. 

Are you a hands-on type that can make improvements to a home or prefer to contract out work?

I have heard vented units don't dry as effectively but haven't heard any complaints from my tenants and believe the technology continues to improve.

The only other option that comes to mind is to make the improvements and try to achieve favorable rental rates to push the story that 2 BR homes rent for a premium because its unique.

Do you have cash reserves for capital expenses and improvements?