You can expect turnover costs, losses due to vacancies, and other expenses.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Originally posted for 100k over what the purchase price was I submitted an low offer and received a counter.

Tax Savings with Cost Segregation: With a $2M property, cost segregation allows $316k depreciation in year one instead of $28k.

I have done it successfully on my last 2 buildouts, maybe 3, but only because I was able to acquire the properties at a very low price and I did all the work in-house (myself and some hired hands on staff).

They will look at the ENTIRE cost of the project and calculate what they can offer you in loan amount.

And maybe diversify a little, invest half in a low cost S&P500 fund like VOO and the split the rest across 2 or 3 syndications.

Right now, you have a property with a great equity position, solid cash flow, and cheap debt (interest rate is low). 

1) I think it’s “funny” that not one news article I ever read for the last 5 years had headlines like “Housing at historical record lows!

Since rental losses are typically passive, the best way to offset W-2 income is through Real Estate Professional Status (REPS) (750+ hours) or Short-Term Rentals (STRs) (100+ hours and more time than anyone else managing the property), which allow real estate losses, including depreciation, to offset active income.A cost segregation study accelerates depreciation, generating large upfront deductions.