You didn't mention the interest rates but 3 years ago, I am going to assume it was much better than it is now.

The thing that would deter me from this location is a background rate of appreciation of 3.12% and low school ratings.

.✅ Interest Rates & Terms: Expect slightly higher rates than standard fix-and-flip loans, often in the 9-12% range with 12-18 month terms, depending on your experience and lender.

Hello @Chris Atkins,To achieve and maintain financial independence, only invest in cities that meet the following requirements.Significant and Sustained Population Growth: Rental rates follow the basic principle of supply and demand.

Companies need robust infrastructure and a sizeable skilled workforce.Low crime rates are essential.

High interest rates are deal killers IMHO.

However, the book was written when home prices were close to half of what they are now, and interest rates were half of what they are now.

It’s too soon tell but from what I’m seeing the hit on the Federal workforce is also impacting contractors throughout the DMV… I expect panic selling which increases inventory, however, with higher interest rates, which will likely continue upwards if tariffs & deporting our cheap labor comes to fruition, first time homebuyers are shut out.  

This means that when you sell the property, your adjusted tax basis is lower, which increases the capital gain you must recognize.Additionally, any accelerated depreciation taken is subject to depreciation recapture at a higher tax rate (up to 25% for real estate assets) rather than being taxed as long-term capital gains.So, while cost segregation provides significant upfront tax savings, it also increases your capital gains tax liability upon sale unless you use a 1031 exchange or other tax-deferral strategies.You can find your current tax basis by reviewing your depreciation schedule (Form 4562) and prior years’ tax returns, specifically looking at your adjusted basis on Form 4797 (for sales of business property) or Schedule D (for capital gains and losses).Your CPA should be consulted prior to making any decisions. 

What our clients generally do is take the average gas billing for the year while occupied. give themselves a little wiggle room,  and build it into the rent as a flat rate, similar to water or electric with a single entrance.