Over here in Chicago, I continue to share how amazing both the FHA 203k and homestyle renovation products are!

You'll usually need more than 20% down to cashflow, unless you can find an asset to reposition.

Josh, we are entering a period where the FED has came out and said rates are coming down.Based on decades of data, during market cycles when interest rates are decreasing, asset prices rise.

I think most BP folks would agree that you have the right idea, diversifying your assets with stocks, bonds, and real estate.

People are always trying to reposition and sell off assets.

This would have allowed the investor to secure their interest against the asset while also benefiting from any equity appreciation upon the eventual sale (assuming the plan is to flip).

You might "lose" money on cashflow but you keep an asset that will hopefully appreciate in value and you get several benefits other than just appreciation. 

There are pros and cons depending on your goals.Why an LLC Might Be a Good Move• Helps protect your personal assets in case of a lawsuit• Makes it easier to bring in partners in the future• Keeps your real estate finances separate from personal accountsWhy It Might Not Be the Right Move Just Yet• Most traditional lenders will not give a mortgage to an LLC, so you may have to use commercial or DSCR loans, which usually have higher rates• Some people assume an LLC will save them money on taxes, but rental income is still taxed as pass-through income for most investors• There are extra costs like annual filing fees and bookkeepingA lot of new investors get stuck on this decision, but the reality is, you can always start out in your personal name and transfer properties into an LLC later.One more thing I wish someone told me early on is that property management takes more time than you think.

You don't wanna pay the bill, don't take the product. 

If the study identifies significant short-life assets (5-, 7-, or 15-year property), you may be able to take bonus depreciation (currently 60% in 2024, phasing to 40% in 2025), which could offset taxable income, including potential boot taxes.Key considerations:Cash boot: If you didn’t reinvest all cash proceeds, the IRS considers the leftover amount as taxable gain.Debt boot: If your new property has a lower mortgage, the IRS views the reduction as a taxable benefit, unless you offset it by adding additional cash.Cost segregation: Accelerating depreciation reduces taxable income but does not directly offset boot taxes.