A post on recapture.People are concerned about recapture when they cost segregate their improvements and for good reason.Recapture is real, and those deferred taxes will need to be paid.But fear not!

It separates your personal assets from your business, providing a safeguard if any legal issues arise related to tenants or the property.

By carefully managing the scope and cost of renovations, you can maximize the return on your investment.3.

So a room used for laundry that is 100 sq ft (quite common) costs the owner about $72,000 over the course of a decade (in today's dollars). 

As a landlord, you are representing yourself to the public as a business. 

I'm thinking of doing this myself and trying to determine what this is going to cost me.

If you are trying to get a cash out refi, I would think the bank would want to see the correct type of insurance for the business you are running.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if you partner looses money. 

It will cost you Time, Energy and Focus. 

Costs before that (during remodeling) are added to the basis.2.