The benefit is receiving future dollars with less value due to inflation.

You have to creatively structure deals to squeeze out cash flow these days in the big cities where prices are inflated.

But I'm saving an amount that is almost the before tax amount of what I'd pay someone, because due to the fact that I'd have to depreciate the expense over a few decades, much of the tax value of the deduction from hiring someone to do the addition will be eroded by inflation.

Schools where I am from came up with "suite" style living for all students so rent is inflated to say the least, trust me I know from experience.Any experience and guidance you guys have for start ups and first timers on here would be excellent.Thanks for the support guys!

@ Ben WakefieldIts really the house flippers that inflated the prices for everyone.

I've done 1031s but probably shouldn't have, it was a popular thought.The though of deferring taxes and paying with future cheaper dollars is rather a myth, for those dollars to be cheaper you will have inflation.

No one is going to inflate their income on a tax return.It just depends on what your investment goals are, but I think most people would say a 14% cash on cash return is pretty good.

Also be aware that your purchase price will likely be inflated above current market value.

A lot of agents in my area send out mailers showing inflated comps not relevant to the actual homeowner hoping to get listings, that is why you get some delusional sellers.

In theory, if you see inflation you should borrow now and pay back in cheaper dollars.