The penalties are just too high. 

Experienced investors typically value properties like yours by analyzing cap rates, cash-on-cash returns, and income growth potential.

Additionally, high-income earners with modified adjusted gross income (MAGI) over $250,000 (married filing jointly) may be subject to the 3.8% Net Investment Income Tax (NIIT).For 2025, bonus depreciation is at 40%, so consider leveraging it for eligible property assets like appliances or fixtures to accelerate deductions.

For investors looking to maximize returns while managing risk, here’s why this type of deal stands out compared to Treasuries.Treasuries: Safety with Limited UpsideTreasuries are an attractive option for those seeking safety, especially short-term bonds with maturities of one year or less.

Have any of you used a similar tiered return strategy?

I'm here to connect with like-minded individuals who are interested in the social impact side of real estate investing, as well as the financial returns.

If you get in with a locked in company that's in it for the long haul, your success and being taken care of are gonna be pretty high. 

I decided to take a lower CoCr for stable, high quality tenants and have zero regrets.

With that, I want to ensure that my approach to real estate is starting with the niche that generates faster returns from the beginning) as a rough example:I can buy Focal Utopia headphones for 8K or I can buy headphones from kmart for $25.

Most high growth markets like Indianapolis or Columbus won't hit 1% rules in good areas.