If you sell directly to a homeowner, the issue can come back on you and bite you in the a...  

Hi Jayce, we got the seller to carry back the portion of the down payment and the bank to finance the 1st position on the rest.

Here's the original post: https://www.biggerpockets.com/forums/517/topics/1222034-pote...Thanks to @Michael Plaks for highlighting that the 12/31/2024 deadline and the enforcement and the penalties are back, as of 12/23/2024!...

Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to uncle sam instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they just buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of best ways to end up with a much larger net worth at the end of your career.

I once had a cabin in downtown Gatlinburg that had a small sleeping loft that was built out by Dolly Parton's brother back in the 1970s. 

If a client complains, you can always make a quick call to boost it for the month and then revert back, but I have never had to do that.

If you cash flow $1K per month for 36 months, and then sell with the ability to pull back your original investment, would you consider that a win?

In FL PS only provides about 37% of the leads/oppertunities going through the county records offices (I have  study I have done comparing the 2 to back this up if you want me to post it/send it) recorder offices Florida and Hilsborough are obviously competitive but if your getting information before everyone else and using it fast in the market where it matters its not so competititve.If your leads are for say absentee owner, tired  landlord then you want the owner to have had the property for longer to hopefully increase motivation.

These estimated costs should then be reconciled back to actual costs or the purchase price.Have you had a cost segregation study performed?

A little about me: I work with investors worldwide to build portfolios with turn-key-ready SF/LTR properties and manage them on the back end.