@Colton Kotylo, with the new NAR settlement and the ever-changing landscape of buyer/seller representation, particularly commission fee payout, this should have been crystal clear between you and your agent before she toured homes with you.

I understand that state tax and regulatory conditions can vary quite a bit. 

If the seller is still on the property after you close (you negotiated delayed possession), I wouldn't be opposed to doing exterior work (roof, landscaping, concrete, etc.), but I wouldn't do any interior work.

Legal and Regulatory Considerations Thanks in advance for your help!

Everything I have read has warned about licensing/regulatory issues only if I am lending to owner-occupied.  

The landscape of real estate education is vast, and while I've garnered immense knowledge from many, none have resonated with me quite as profoundly as Subto.Whether you're at the dawn of your investment journey or, like me, have weathered the trials and tribulations of the market for years, Subto has a treasure trove of insights to offer.

With carrying costs, repairs, and previous unknowns, I am now looking at approximately $65k as we are doing nearly everything ourselves (I own heavy equipment and previously had a contracting/landscaping business).

Couldn’t finish windows and landscaping as wanted.

You should have a clear understanding of property tax rates, insurance costs, repair costs, utilities, landscaping etc.Any buyer must develop their own proforma and that is what should be relied on.

Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.