Depreciation can be applied to the investment portion, reducing taxable income.

Even in the nice locations, most top out around $2,800.Of course there is also your increased insurance, vacancy, repairs, CapEx, and the never mentioned reduced rent on the main house since having a stranger living in your backyard usually isn't appealing to most renters. 

Although this is a long term investment and not in the main stream, it has added a certain level of comfort knowing the above potential investment risks are to a degree reduced.

there are of course more creative strategies to reduce that up front outlay, or recoup your capital, like, say, the BRRRR method. but they are time and energy intensive and certainly not hands-off. 

This resulted in longer times to re-rent and well as reducing the rental pool.

Interest reserves will greatly impact cash to close and cash to operate and capitalized interest rates will reduce required cash for duration of project.

You need to be weary of that and reduce liability as much as possible. 

@Gash Nookala,Renting can indeed be slower in winter, but here are some tips to boost interest:Enhance Listing: Ensure your listing has detailed descriptions and high-quality photos—consider professional photography if needed.Competitive Pricing: Double-check local comps; even a slight price adjustment or incentives (like a reduced deposit) could attract more interest.Broaden Marketing: Beyond Zillow, Hemlane, and MLS, use social media, community boards, and local business connections to reach a wider audience.Flexible Lease Terms: Offering shorter or month-to-month leases might appeal to tenants during this slower season.Local Property Manager: A local pro can tap into their network and help fill the vacancy faster.These steps should help you find a tenant despite the seasonal slowdown.

It may be time to refresh the photos in your advertisement and offer a move in special with a reduced first month rent. 

Good tenants can significantly reduce vacancy rates, turnover costs, and maintenance expenses.Many property managers I know are quick to fill vacancies, often asking, "Do they meet the minimum requirements?"