This is a fundamental component of the BRRRR strategy that I have yet to understand.Or, does it not make sense for the friend to invest in this deal if they're primarily looking to flip? 

I used the proceeds to buy another property that had an obvious value add component.3.

But joining a good Mentor and Networking group can be advantageous if you are missing any of the needed components. 

Detailed studies break down every component for maximum depreciation ($3,000–$10,000).

That's the key component that is usually missing when I hear other entrepreneurs/investors say they don't like QBO.Something else to keep in mind is your entity structure and how your entities file tax returns.

The Detailed Engineering Cost Estimate Approach is typically used for the purchase of used property.SURVEY OR LETTER APPROACHOnce a site inspection has been completed and all components of a property have been determined, your specialist will send a survey or letter to the contractors or subcontractors to request they provide the cost of each of the items.

Quote from @Isadore Nelson: Quote from @James Hamling: @Jonathan Greene to piggy-back on what your laying down here: I believe a core component of the "problem" is a gross over & mis use of "Cash-flow". 

Knowledge and understanding of it is just one component of what makes someone successful in it.   

Being a nutrition and fitness coach, your point below is the largest component that I have seen. 

This deduction is related to the loss on disposal of certain assets in your building such as replacing or removing existing components of the building.Cost segregation studies can be a very beneficial tool for real estate investors.