This protects your investment and gives you leverage if there are issues.Other Tips:Make sure the lease explicitly defines the move-out date.Conduct a thorough walkthrough with documentation before and after the lease period to avoid disputes.Handling a seller-to-tenant situation can be tricky, but with the right precautions, it can work smoothly.

For larger properties, some of our clients run another cost segregation study at the time of sale.2) Partial Dispositions - Taxpayers can carve out and dispose of components removed or demolished from a building.

Define "better."

Its this sharp depreciating component which has always prevented such a purchase.  

Principal Paydown:  Cash Flow:  Tax Benefits: Savings from depreciation and interest deductions.For a deal to make sense, at least three of these components—home appreciation, cash flow, and principal paydown—need to be strong.

Here's the key components to calculate your tax liabilityAdjusted cost basis - Is the purchase price, plus capital improvements, minus depreciation.

(I won't do them)The buyer can be facing "equity skimming" as defined by the law:Penalties of Equity SkimmingEquity Skimming is a type of Mortgage Fraud.

You should be able to find local builders that will finance the construction component of your new build, however! 

They do require these to be done on Primary Residence, and they probably do have a credit component, but may not have an income component to underwriting.

In US tax law, the depreciable lifespan of an asset is defined by its MACRS classification which stands for “Modified Accelerated Cost Recovery System.”Under MACRS, depreciable assets are assigned to different classes, with each class having a specific recovery period.