Also the majority of those costs to covnert to a 2nd unit will need to be capitalized and depreciated, but some things (new appliances, flooring, paint, kitchen cabinets) can be shorter year assets vs. across the full 27.5 and IF it turns out that unit is > 50% you can use bonus as well on those items.

Quote from @Ariel Rivas: I don't know your market specifically, but it's typically cheaper to purchase those items at Home Depot or Lowe's.

Only two electrically operated items may be plugged in to any electrical receptacle.

If you’re itemizing your deductions, another great strategy is making a strategic donation to a charity or organization you believe in, like your favorite nonprofit or your church.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

If the credit items reported are up to date with no late payments that is generally good enough for me.

I've read a couple of Brandon Turner's books now and have been getting really into the mindset to start this journey.A couple major items I'm initially thinking of is where to start.

Year 2 had some large expenses, including some CapEx items (water heater, roof).

There are three items required to make a successful partnership - Time, Experience, Capital.If you are a syndicator, you are likely expected to have time and experience.There is a lot that goes into being a competent syndicator - Proper communications, finding a good deal, communicating quarterly updates, networking with lenders, contractors, PM companies.You can gain experience by doing your own deals or working for someone who does(Ideally both).I personally think you should cement your experience before worrying about OPM.Best of luck

With the savings from reduced housing costs, you can reinvest in more properties, gradually building a diverse real estate portfolio.