Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

If you are going to acquire these properties using some type of financing its best to begin mortgage planning ahead of time so you can execute with the best precision.

He actually pushed me away.

We handled everything in-house from the point that we acquired the properties to listing them on our website and pushing them out thru an internal sales force that did outbound calls to investors.

Even in this case, she pushed for HVAC guy to show up on sunday evening vs Monday morning, because it was better for her schedule.

In 2021 we bought the building for $1.5M using private lenders, pushed the occupancy from 50% to 80% occupancy and it appraised for $3.125M, allowing us to pay back the private mortgage.Right now, we are in the predevelopment process of design and piecing together the capital stack for the redevelopment deal, which will be made up of historic tax credit equity, RestoreNY Grant, DRI Grant, etc.

Quote from @Dustin Tucker: I'm going to go out on a limb, and say the dumb money keeps buying treasuries like they are going out of style, which continues to push the rate lower. 

Looking ahead, I’m aiming to start investing in long-term opportunities in Spring 2025. 

Keep pushing, trust your gut when it’s backed by solid info, and keep leaning on the people who’ve trekked a few miles down this path before you.- Dennis Bragg & Jasper

There are so many gurus online pushing 0 down loans, and it simply does not exist if you have no experience, assets, or reserves.