Quote from @Jason Malabute: If the insurance payout ($380K) exceeds your adjusted basis (original purchase price + improvements - depreciation), it creates a taxable gain. 

It is a TON of work but you only need 1 to 2 deals per year to live the good life.

Let’s Connect and discover ways to Work together, exchange Ideas, and create Value for each other’s Goals.Thank you, and I look forward to hearing from you!

Then to find inventory, you need to search out, i.e. network, and find out who is creating these type of notes or you help people that may have an interest in seller financing how to create a note that is marketable to the secondary market.

Have we gotten to a point in this industry where a property is more attractive by short changing the true fundamentals and classifying the property an affordable housing opportunity? 

This post does not create a CPA-Client relationship.

This partitioning of the property and doing a simultaneous closing completely changed the trajectory of the deal.

My family has been in it all my life.

Owner occuppied loans regualted in every state .. must have state license and NMLS registration.NON owner occ loans on 1 to 4 units are regulated same way in about 15 statesin the other states they are unregulated.Keep in mind though investor loans do not follow the same rules as owner occ and rates can change charges can change closing dates can be blown through etc

Here is a newly created resource on BiggerPockets, which touches out cost segregation, accelerated depreciation, bonus depreciation, depreciation recapture, Real Estate Professional Status (REPS), STR Loophole / STR Strategy, example properties, and more.Cost Segregation 101 Author: Sean GrahamHappy to answer questions :)