We've been FI for years with a moderate 'luxury' househack and never a car payment. 

But I had an old cheap night house now I have expensive luxury houses.

ZIRP (zero interest rate policy, for all you young Dudes out there). ie when banks were lending at ultra low interest rates apartment builders jumped on the cheap capital to build that lovely new multifamily apartment building in a town near you.But not every town.Dallas, Phoenix, Charlotte, Houston, will boom in 2024.

Like, you have the BIltmore mansion, perhaps the gaudiest and most expensive property in the country, and you have folks who (like I saw the other day) were taking a bath using a spigot that was next to my gas pump.

Only manage high luxury properties, they've done an excellent job with some Oregon Coast STR's. 

Because I have nearly 20 years in the Smokies, I have the luxury of knowing that market first hand.  

I have seen luxury rentals sell in the $2M range that generated over $275-300k but they move fast.

I am definitely being ultra-conservative when it comes to repair and maintenance costs but still the 2-unit multifamilies do not seem to have a good cash flow. 

Most expenses prior to this date would be added to basis and depreciated once placed in service.Unfortunately, you often don't have the luxury of choosing how you would like to report certain expenses.

Some investment strategies don't offer such luxury but worth spending a little money up front confirming as that's something your LP's will ask or want to know has been thoroughly researched.