Study the market.

Richard and his team look for houses in certain markets where the seller is nearly underwater and would have to pay money out of pocket to sell their home.

It allows a substantial portion of the asset's cost to be deducted in the first year of service.In 2023, the bonus depreciation rate is 80%.In 2024, it decreases to 60%.In 2025, the rate further reduces to 40%.COST SEGREGATION:Cost segregation involves dividing a property into its individual components for tax purposes.Some parts age faster, like carpets or paint.Your CPA can use this info to more accurately depreciate elements of your property leading to potential tax savings.BASIS:Your basis is the initial price that you paid for your property, including any expenses or improvements.Knowing your basis is crucial for tax purposes, as it's used to evaluate depreciation & determine the capital gains or losses if/when your property sells.LAND VALUE:This is how much your land is worth without any buildings or improvements.Land doesn't get old like buildings, so you can't depreciate it.

I have a few contacts for independent insurance brokers that can look at some different market places to get better pricing.  

THAT is the ready target market.

This has become a trend, where the initial numbers appear strong, but subsequent revisions show a weaker-than-expected labor market.

He goes to forums, meetings, markets to leads HEAVILY, studies like crazy, and more.

That’s why this tool breaks down various components like cash flow, principal paydown, home and renovation appreciation, initial equity, and depreciation for potential tax savings.

I plan to live in one of the new units long term but will rent out the second new 2 bed 2 bath unit at the market rental rate.

It depends on who you are, what you are trying to accomplish, and how litigious your market is.