@Sean ConroyThe cost of building is not going to go down, unless you're looking at the debt component.

Assets identified in this study include:Bathroom Fixtures: Bathtubs, vanities, showers and toiletsStructural Components: Drywall, wood framing and interior partitionsBuilding systems: water heater, electrical distribution, HVAC, plumbingInterior Construction: Wood flooring, stairs, ceramic tileSmoke detectorsThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

If one tenant moves out or unexpected repairs pop up, the other property can help cushion the impact.Of course, more properties mean more responsibilities...double the maintenance and potential headaches.

Just make sure to include a buffer (about 10-15%) for unexpected costs, especially if you’re working on an older home.

The sophisticated money is not buying in stagnant markets with poor fundamentals because they can achieve the 1% rule, can complete a BRRRR or because of more favorable landlord tenant laws exist just to highlight what’s rarely part of their acquisition criteria which is a stark contrast to the mindset of most within the BiggerPockets community.Since your focus is specifically on landlord tenant law component I’ll add those who follow the law, properly maintain their property, respond timely to tenant requests, use well drafted and fair leases and don’t unreasonably withhold deposits  find themselves in far less tenant controversies. 

., laundry facilities, pet fees).Fixed Expenses: Include mortgage payments, property taxes, insurance, and property management fees.Variable Expenses: Include repairs, maintenance, utilities, and any unexpected costs.Capital Expenditures: Set aside a portion for future big-ticket items (e.g., roof replacement, appliance upgrades) as a reserve.3.

Just keep 3–6 months of reserves in case of vacancies or unexpected costs. 3.

I was glad to show some unexpected kindness when he cried poor at Christmas.

This will probably be unpopular but you should save for a few more years even if you save enough for your down payment, if you are exhausting all your savings, you will struggle with any unexpected repairs.

Maybe assume 1 unit out of 5 has a $5,000 unexpected bill every 3 years?)