Bonus depreciation is derived from the portion of the property's value with a shorter useful life than the buildings themselves.

Purchase price: $390,000 Cash invested: $25,000 House hacking is a strategy that involves reducing or eliminating your housing costs by renting out a portion of your residence.

The boxes are the same size but if you read the fine print you'll see that there is less cereal in the box.   

Great to buy homes for $50K if they cash flow but just keep in mind your setting yourself up for a difficult path if you plan to take any cash out down the road based on minimum loan size/Max 75% LTV guide lines.  

That way you can use that 2% to do a rate buy down to ensure a better cash flow.If you are buying it as a Primary owner occupancy I would ask for 3-4% seller credit to cover rate buy down and a portion of closing costs.

Rehab portion of the loan was to repair some interior work worth up to $65k. unfortunately 1 month after closing, I had one of the tenants that was getting evicted complain to the city and I ended up getting a bunch of building violations. 

Depending on the size of the home you will have a lot of people connected at one time and WFH post COVID is still a thing.

What size is the land? 

@Jen BreyslerCheck with your usual CPA if he/she can handle the CA portion of your taxes. 

At one point I noticed a fist sized hole in the wall at about ankle height.