The long-term relationship, with those we genuinely like, over dozens of deals, is where we make our money.

I would buy it also for roughly the same price (it will be in good condition but may require some small fixes for a tenant), but it's bigger and has an extra bedroom so it will rent for $1400.I could have also ran this model by assuming that I would get the same type of property as the turnkey, but for $125k and would rent for $1200 as the turnkey would.

In that case, using the cost segregation study this year might not be necessary because the extra depreciation would just increase your loss, which you might not be able to fully use right now.However, you have two options:Use the Cost Segregation Now: This would increase your loss this year, and you could carry forward the unused loss to offset future rental income.

They loved it because they got some play money right away and steady income each month without having to deal with toilets and tenants.

The stone elevation can be expensive but will really move a house quickly with the added curb appeal.Some things I like to add for not much extra cost..

If they want your money, @Pavan K., why aren’t they offering you a stake in the partnership?

Yes buying distressed property is a good way to get extra profit.  

I need something that can protect my money from inflation.

Here’s the breakdown:Financing & Investment Details: Total Project Cost: $750,000 Purchase Price: $450,000 Rehab Cost: $300,000 Total Investment Needed: $750,000 Private Money Loan: $550,000 (1-year term at 9% interest) My Cash Investment: $200,000 Interest for Private Money Loan: $49,500 Closing Costs for Private Money Loan: $0 Closing Costs for Refinance: $27,000Total Cash in the deal:$750,000 + $49,500 + $27000 = $826,500Exit & Refinancing: ARV: $900,000 After renovation, I refinance at a new loan of ~$675,000.

I do not have a ton of capital so I would have to use a hard money lender, (who I have already met with).