There are numerous paths to wealth in this country; they can't all align with your goals.

Investing is not just about increasing numbers; it's about strategically building a future that aligns with your financial goals and lifestyle.How many properties are you closing in your portfolio this year?

Hi Reeves,Experience in project management/construction and financing are definitely two key components.

Just ensure the new property aligns with your financial goals and cash flow expectations.After completing a 1031 exchange, you typically don’t have to wait long to do a cash-out refinance.

If that area doesn’t align with my objectives, what’s the next town that’s about to “take off?” 

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.

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.

For example, we might arrange a shorter penalty period or reduced fees if you expect to exit the property within a specific timeframe.Ultimately, the key is aligning your financing terms with your exit strategy.

I felt like the owner gave me a pretty good deal and thought the stars would never align more then now. 

They analyze components such as cash flow, principal paydown, appreciation (both home and renovation), initial equity, depreciation, and interest deductions for tax savings, giving you a clear picture of individual gains and ROI over 30 years.