The benefit here is two-fold: (a) it outlines all functions and components necessary to complete a site-built structure from the ground up; (b) you have a clear template for allocating responsibilities on rehabs.

Do you mean 30-40% of the tax basis, after land allocation?

That was was my exact plan in regards to the multifamily in regards to the allocation of units but I did not know about the 203k until @Casey Murray mentioned it so now I have a much wider array of options purchase-wise.In your experience, is it worth trying to assemble an estimate based off of market rates and building specifications or should I just wait until I get the estimate from the general contractor?

yes but you need to come up with a reasonable allocation as to how much is personal and how much is business to split the two amounts to equal the one purchase price. 

Just title it personally and then allocate usage to businesses.

(you can find how much suspended passive losses you currently have on your IRS Form 8582 - which your CPA is likely not giving to you and in that case you should get a new one)@Yonah Weiss when are you going to get my cost segs done :PWhat Lane mentioned here is IRS code (Sec. 469(g)(1)(A)): upon a taxable disposition of a passive activity, the taxpayer may use any remaining suspended passive activity gain allocated to that activity first against passive loss from the same activity, then against net passive loss from other passive activities, and then as a nonpassive income.In practicality, segregation most likely benefits the GP side (LP not so much) and becoming RE Pro is almost nonpractical (except in Airbnb-self managed case); the PAL offset route is much easier to implement. 

The Treasury Dept just announced that 89% of the funding allocated to states for rent payments has yet to be released by the states.

Say you buy a $4M apartment complex and allocate $1M of it to land.

If its all in at 10% COC or 20% its up to you.Maybe you say you will allocate 70% of the funds so you have 30% in reserve for the next great deal.

The idea is that this allocation would not be your main income driver, but it would balance off the public markets when they were doing badly.However, in my opinion a lot of the advice was skewed by the fact that the majority of traditional advisors only understand and know about public markets and many of them know nothing about directly owned real estate.