., 17.5 years remaining for residential property).New Schedule: Simultaneously, start a new depreciation schedule for the additional cost basis attributed to the replacement property, following standard timeframes (27.5 years for residential, 39 years for commercial).Option 2: Treat as New AssetCombined Basis: Treat the entire cost basis of the replacement property (carried-over basis + additional funds invested) as if it were a newly acquired asset.Single Schedule: Depreciate the total cost basis over the standard timeframe for the replacement property type (27.5 years for residential or 39 years for commercial).If you choose option #2, you need to file an additional form (4652) with your tax return. 

The people that have tried to do STRs realize how much work it is and how hard it is to operate at a high standard.

Here are a couple strategies to increase the cashflow to maybe cover the whole payment:1.

I see the rent, I can increase is 5% plus rate of inflation.

It has been booming for the past couple of years with strong job growth and population increase.

I have worked with Section 8 in the past and within the last 2-3 months have done a huge increase in working with Section 8 and it's easy-peasy.

AlabamaEffective Property Tax Rate (2019): 0.37%4Typical Home Value (2022): $189,9766Annual Taxes on Home Priced at State Typical Value: $702.9The current metro area population of Montgomery in 2023 is 374,000, a 1.91% increase from 2022.

Escrow will do what they are told, so long as the buyer and seller agree.Even for a “standard” sale, virtually every rehabber we know will make a cash offer with a quick, five or ten-day close. 

If you are a 9 right now, with the way that floods in all markets are increasing (along with the cost of flood insurance), it does not make sense even if the numbers look ok.

Usually there's increases and you have the ability to appeal in front of the board.