Note that California taxes capital gains as ordinary income (up to 13.3%) and does not conform to federal bonus depreciation rules.This post does not create a CPA-Client relationship.

It was bonus that CA had near fixed property taxes.The low vacancy rate decreases the odds of getting a bad tenant because the tenants realize then will need a good LL reference to obtain local housing. 

Investing in real estate syndications is a great way to get exposure to real estate without having to manage the actual asset. 

I plan on offering that bonus commission and taking away that commission based on how soon they complete renovation. 

Here’s what I recommend:Cash Investments:No Debt, No Stress: With cash, you avoid third-party control and loan vetting, giving you full control of returns.Equity Builders: Partnering with builders often reduces your property entry cost by up to 20% below market value.Consistent 10% Returns: With an all-cash approach, achieving 10% ROI is realistic and efficient.Financing Strategy:If cash isn’t feasible, consider a balanced financing model:40-50% Down Payment: Keep leverage manageable while maximizing returns.Lower Debt Exposure: A conservative loan-to-value ratio (LTV) reduces risks and keeps returns stable.Work with a Builder: Collaboration with builders can lower acquisition costs and increase your ROI.Key Takeaways:If possible, prioritize cash for simplicity, control, and consistent returns.Financing can work well with a disciplined approach to debt and a strong underwriting process.Partnering with builders offers opportunities to reduce costs and enhance your portfolio’s profitability. 

This is particularly effective when paired with bonus depreciation provisions.This method not only helps reduce your tax liability but also enhances cash flow, making it a powerful tool for real estate investors looking to grow their portfolios.3.

If passive investing appeals to you, real estate syndications or REITs diversify exposure without active management.Best regards, Stevan

No matter which format you plan to read you'll get all of the bonus content abovePre-order now to get the bonus offer: https://store.biggerpockets.com/products/the-house-flipping-...Photo of James with a copy of the book, text saying "Last chance to pre-order" and a "buy now" button

Bonus point, if you could share (in a DM) approx how much you pay annually for your quad home insurance, so I have some idea about the market rate there I can send you a list of insurance agents here in Columbus

I guarantee they're going to have good answers for you on minimizing the impact of taxes and exposure without breaking the law.