This will allow you to spread out the costs of the renos and minimize the vacancies.

Year-over-year, asking rents have increased by 0.4% from Q1 2023.The spread between asking and effective rents has narrowed slightly over the past year, suggesting landlords are offering fewer concessions as the market stabilizes.

But if they have enough volume to spread out that risk with tighter underwriting guidelines, maybe that could be ok.But I suppose in reality, most doing those LTVs are also loose on the underwriting guidelines.

Our commercial loan is based on the 5 year continuous maturity treasury note plus a spread of 2.25%.  

Atlanta has a high entry point and the antiquated houses that will make for those great investments with the 150K+ deal spreads are largely controlled by the wholesalers. 

Do you need to stack or spread pine needles where the tents will be set for cushioning and insulation from the cold earth beneath?  

Instead I just invest a little time and spread it across multiple vintage years.

Hopefully the Sponsor is being very conservative in their returns and this isn't just a tight spread offering in a macro MF environment that is looking precarious. 

Many states have a limitation on 179 that is different from the Feds.Some have really painful rules on dealing with that bonus depreciation addbacks.You still benefit from the cost segregation study without the bonus depreciation - say your cost segregation study broke out $100k of 5 year property - now instead of spreading that out over 27.5 / 39 years, you get to take it over 5 years for your local state.You still get the bonus depreciation amount on your Federal return, regardless of what the state does.

Its been lower lately because of bid-ask spread and I can get the same returns on a performing loan as some of these NPL sellers are asking.