We don't operate within a salary cap.

Do you want to replace your salary and be full-time in real estate?

Seems like I can't seem to stay cash flow positive after the refi part. 

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.

I'm not sure if I'm budgeting too much for expenses or if that's just how the market is in my area because it is very difficult to find anything that cash flows positive.

We pride ourselves in keeping the forums positive, helpful, and focused on real estate (please, no politics, religion, etc.).

The 20% down payment isn’t a concern for me; my primary focus is ensuring the investment generates positive cash flow, which is what my post was aimed it.

With the region's expanding infrastructure, business development, and population growth, it is well-positioned for long-term profitability.

For this risk, only the owner benefits from their property increasing in value and any positive cashflow.

Yes, above-market rents and guaranteed payments are super great BUT for me they are second to actually being able to help and make a positive impact for people in need.