An engineer sent by a cost segregation firm can find a lot MORE components to bonus-depreciate than you can estimate yourself.

The study itself needs to be done by qualified engineers to meet IRS standards - CPAs can help interpret it but shouldn't be doing the actual component analysis.

Property type + age: The 4-plex and duplex often have the most “reclassifiable” components.

I love the action I think that is a key component between the two types, I enjoy building the deal as small as my deals are as I am relatively new when compared to a lot of the top guys here.

Labor of course is a big component and markets will price their labor by competition.  

Excellent post, @James Jones.We standardized all major renovation components in 2017.

I would suggest more real estate investors would have a better chance as success if they had someone to help them keep the financial component of owning investment real estate organized.

One per year and ideally some sort of value add component involved where you can build some equity with each of them over the first few years as well.

Underwrite conservatively so surprises don’t take you out.Minimal-rehab deals help, but they don’t erase age.Buying something functional is smart from Phoenix, but even “rent-ready” homes in these ZIPs may have 20–40-year-old components.

I suspect your insurance number is low. 35 to 45% all in costs is pretty common if you have 3rd party management. keep in mind cash flow on top of all cost is only one component of the investment and in my mind not always the most important unless your buying in an area that is depressed and you think values will be stagnate for basically the life of the investment then positive cash flow a very important factor.