An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

@Joe Michaels, What a lot of investors will do is to use the 1031 exchange as @Michael Plaks said, isto actually "acquire" additional depreciable basis. 

Just make sure to run the numbers to ensure the rehab costs align with your cash flow goals for the rental.

Ok it might not be 1:1 but it will add additional revenue.

If out-of-state offers significantly better returns, ensure you do thorough research and build a reliable local team.

Additional DetailsI’m willing to invest in out-of-state properties, though I prefer areas with good property management options.My primary focus is passive income, but I’m also interested in value-add opportunities.I want to ensure these investments provide strong tax benefits and diversify my portfolio.I’d love to hear from experienced investors:What would you do in my position?

You can usually request this from a title company or look into public records in your county’s clerk or recorder’s office.If you’re not sure how to navigate this, contacting the auction house or a real estate attorney familiar with foreclosure auctions can help ensure there aren’t surprises.

You can prevent this by requiring them to add you as "additional interest" on their policy.

The property owner's tax professional can help them with that and ensure they don't pay taxes twice on the same income.Disclaimer: My advice/opinion in this post is just that, my opinion.

However, for major issues, STR insurance ensures you're fully covered.