So yes, you need to set aside enough money to pay future taxes.Taxes are calculated only on your net profit - i.e. after everything is deducted, including labor & materials, holding costs, financing costs and business overhead such as marketing and driving. 

For the 10 year period spanning September 2014-2024, single-family prices in Austin nearly doubled, yielding an annualized appreciation rate of ~9.8% in that period.With inflation nearing its 2% target and signs of a slowing labor market, the Federal Reserve last month made its first cut in to the federal funds rate since the start of the COVID pandemic.

Quote from @Joe S.: I thought all millionaires shopped at Ross and Marshalls.

Here’s an example of bonus depreciation.Here are some of the current trends that are highlighting the importance of a cost segregation study.Contract Logistics Expansion: Experiencing growth in contract logistic divisions leading to outsourced warehousing and distribution activities.Warehouse Technology Advancements: Integration of AI, robotics and IoT allows for operational efficiencies including reduced labor costs and improved safety.Warehouse Automation Growth: Significant growth signals a need for efficiencies and the adoption of new technology.Warehouse Space Expansion: There are ongoing developments in the warehouse space to help support the growing demand for infrastructure and warehouse space.Robotics and AI investments: There is a demand for faster throughput and immediate fulfillment which is causing investors to invest more into AI and robotics.Cost segregation becomes an even more critical tax strategy as there is an increase in investments in automation and technology as it frees up cash by creating additional tax savings.Some of the financial benefits that a warehouse investor can expect from a cost segregation study include:An increase in cash flow for automationImmediate tax savingsEnhanced warehouse property valueImproved warehouse ROI by reducing tax liabilities and increasing cash flow.There are many items that can be reclassified for accelerated depreciation through the use of a cost segregation study.

I own a GC company and have guys with plenty of ground up/new construction experience so I'd save labor and material costs.

Ricardo,If you need immediate liquidity, selling might be the better option.If you’re interested in long-term wealth building and passive income, renting out the property using a DSCR loan could be a profitable strategy.Regards Joe

(Very Tough)Regards Joe

Quote from @Joe S.: Quote from @John Morgan: Quote from @Kent Ford: Quote from @John Morgan: @Kent FordI’ve got 18 SFR in the DFW area.

Hey Joe, dealing with a hurricane just as youre getting started can be a real mess, but there are a few strategies that can help you navigate this.

Quote from @Joe Kimball: We have aprospectuve Tennant who's employer will be covering their rent for their 12 month contract.Anyone dealt with this before?