that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

New kitchen, bathroom, counter tops and appliances throughout the home, including new HVAC.

However, it’s important to account for vacancy (5-8%) and maintenance (5-10%), as these can impact your net cash flow (if these weren't included in your cost calculations already).

You just need the labor cost to install both of these - but even combined with the labor cost, it makes so much more sense to do it this way.Kitchen and Bath companies are a wonderful resource for homeowners, and I'm sure some out there give super fair prices to investors!

When we do our deal analysis, we normally build so that at 65% occupancy on our 1st phase we are cash neutral, which includes P/I paydown. 

Here’s a breakdown of some of the information you may need to provide for a cost segregation study.For existing buildings:List of equipment on the propertyProperty settlement stateAny appraisals or purchase/lease agreements Property maps or blueprintsSchedules, change orders or documents for future renovation plansSupporting documents for calculating real property book valuePrevious purchase price allocations that separated assets into their appropriate allocation and valuePast site inspections and photographsDocumentation that proves or records deterioration of assetsFor new construction:Contracts or contract paymentsLand and property sizeBlueprints of projectList of equipment involved or purchasedList of projected costs including costs for land developmentApplicable site inspectionsConstruction schedules and payment requestsPhotographs of completed assets or work in progressCost segregation specialists typically have an organized plan for the collection and analysis of the information provided.

I'd be happy to include you on our list as well so you could such receive weekly snapshots.

They offer great advice on handling these situations, including tips on dealing with the sheriff and eviction procedure, as well as navigating money judgment collection.In terms of whether you should hire a lawyer or manage it yourself, it depends on the complexity of your specific case and your comfort level with the process.

There are many folks, including myself, in this forum that can help and the more info you can provide (mainly numbers on the property), the more we can help you.

I'm actually not leveraging bonus depreciation at the moment, and am looking simply to offset normal expenses (including standard asset depreciation) against non-passive (W2) income.