Looking to maximize appreciation & tax benefits, so not necessarily looking for high cash flow to replace a salary.Good advice on not focusing on the number of properties.  

If you are purchasing that MF property for $1 mil then you can use the 3 units as your replacment for the 1031 exchange ($750K of value) and live in the last unit ($250K of value).An awesome way to house hack your way up!!! 

Being a nutrition and fitness coach, your point below is the largest component that I have seen. 

One thought was to replace to large commercial tenant with a company that had a similar profile.

Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

It’s about uncovering high-demand niches that hold up even during fluctuations in the broader market.What I’m describing aligns partly with absorption, but I’m looking for a tool that allows me to drill down into the components of that absorption rate—filtering by factors such as the number of bedrooms, bathrooms, home type, amenities, and more.Do you see merit in this approach?

It usually doesn't cover for full replacement of your property.

Some of the materials we choose and asked him to pick up (such as flooring) he replaced with low quality materials, I assume to keep more of our money for himself. 

Thus, they are more apt to be torn down since they are in central locations and larger projects can replace them.With regards to the general BP poster or reader, doubt most of us are the $100mm to $300mm investor range to consider taking advantage of these properties.Looks like you're in California. 

@Angelica CrawfordHere's a very helpful article about replacing the value of the debt: https://www.ipx1031.com/replacing-debt-in-a-1031-exchange/