Detailed studies break down every component for maximum depreciation ($3,000–$10,000).

I used the proceeds to buy another property that had an obvious value add component.3.

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.

Also, one of the most often overlooked components of a syndication is the reporting.

It is standard practice and component level depreciation is encouraged by the IRS.Though it is very important to track you time as you go along.

At least one of the coach's calls I did attend the, Rick Boyd, spent the whole trying to comp one property for a beginning student.

This is a fundamental component of the BRRRR strategy that I have yet to understand.Or, does it not make sense for the friend to invest in this deal if they're primarily looking to flip? 

but if you have a view on active vs. passive income.my goal is to have income from multiple sources, ideally part time work that i enjoy is a component. 

Let’s unpack your ROI question in a way that reflects the reality of your financing setup.When calculating ROI with multiple loans, you’ll want to include all financing components in your cash flow analysis.

But there might be a supply chain component to it.