For instance, if a sponsor’s in-house PM charges 4% when the market rate is 2.5-3%, you need to assess whether those additional costs are justified by superior performance or could erode your returns.Ultimately, it's not just about the numbers or the spin—it’s about the expertise and judgment of the capital allocator.

While the bookkeeping will likely be complicated, is the accounting/taxation on this STR based on 100% STR income/expenses allocated 100% to business and general house expenses (mortgage, utilities, depreciation etc) pro rated between STR/personal residence based on sq footage?  

I told the tenant that I will be allocating their last months rent, that was transfered from the prior landlord, for the month of September and served the tenant a 30 day notice to quit (no cause).

The title insurance premium charges for the owner's policy and any lender's policy will be calculated and allocated in accordance with Florida law, but may be reported differently on certain federally mandated closing disclosures and other closing documents.

And whats even better, you can allocate your proceeds any way you want. 

After the cost segregation study was performed, this was the new asset allocation breakdown by useful life.Here are some examples of what types of assets are included in each of these asset classes.5 Year Useful LifeSpecialized equipmentCabinets and countersRefrigerators and microwavesSecurity alarm systems and telephone connectionsDecorative wall treatments, ceiling fans and flooring15 Year Useful LifeSidewalks, landscaping and asphalt pavingSignage and site lighting39 Year Useful LifeDoors, walls, roofing and windowsFlooring, drywall partitions and ceilingsEmergency lighting and restroom fixturesPlumbing, HVAC, and electrical distributionThe use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Additionally there is an opportunity cost associated with this since whatever extra money you allocated towards principal only payments are not available to be used without refinancing or selling.  

Toss in some more details.I will add that a lot of new investors, and some not so new investors, under allocate expenses.   

If he also lives on the ranch then a certain % of that property could be allocated as his primary residence. 

Using the example above, the cost segregation allocations apply to “net tax basis” of $1,200,000 ($700,000 carryover + $500,000 excess basis).