Quote from @Chris Seveney: @James WiseI wonder if there is a statute of limitations component to this Dunno, but it looks like they are looking for 4-5 years in prison for Whalen.

Think about the extra income you need on top of that to pay for retirement(if it's just quitting work early),  medical bills, and unexpected expenses.

Assets identified in this study include:Building Systems: plumbing, HVAC and electrical distributionInterior Construction: flooring, drywall partitions and ceilingsStructural Components: doors, roofing, windows and wallsPermanent Fixtures: emergency lighting, restroom fixtures and signageThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

It really depends on your specific situation.It's good you're thinking about the operational and bookkeeping component for your financial account structure to make things easier on yourself and any financial team members you have or may have in the future.You're ahead of the curve!

This reserve amount represents roughly 2–3 years of projected repair costs, which might be a conservative approach, but it gives us a buffer for unexpected, high cost repairs when they pop up.With a larger portfolio, the reserve pool wouldn’t need to grow proportionally, as funds and repairs can be balanced across properties, allowing costs to offset each other over time.

Single family residential continues to be the main component of our investments within RAD Diversified REIT.  

Since the BRRRR strategy relies on recycling your capital, it’s typically better to stick to the minimum needed for favorable loan terms.Also, consider leaving a cushion in your HELOC or reserves for unexpected rehab costs or delays.

Component Breakdown: The study identifies and separates various parts of your property (e.g., appliances, fixtures, landscaping) into shorter depreciation categories (5, 7, or 15 years) rather than the standard 27.5 or 39 years for real estate.2.

Knowledge and understanding of it is just one component of what makes someone successful in it.   

With a trusted team, you might avoid delays or unexpected costs.Advice: If you lean toward BRRRR, build a solid local network.