Someone I know bought a ranch to use as a short term rental property in 2021 for $1.7 million.Engineers did a virtual site visit, they were able to assign a value of $347,000 to either 5-7-15 year assets that were eligible for depreciation.In 2021, the bonus depreciation amount that you could take was 100%.This means that the owner could immediately deduct the full amount of eligible property in the year it was placed in service, rather than depreciating it over time.With that in mind, he took the full $347K deduction in his FIRST YEAR of ownership to offset taxable income from rentals.This was roughly ~20% of his purchase price.It was a big win for him.In 2024, the bonus depreciation rate is 60% so the calculation would be different.That said, you can still save and defer a ton.

@Adam Czachor I’m having this problem for the past two weeks now and I don’t know why.

Does anyone know both the pros and cons of this type of investment?

Hey @Tanya Maslach what about those two zip codes interest you for this use case?

My biggest advice is to start investing where you have a good network of people you know like and trust...this especially holds true if you will be investing out of state.While it's not impossible to go straight to the commerical I personally found it easier to start in the residential world and then make my way over to commerical multi-family. 

This will be my first rental property and I want to do the right thing. 

I would look into whether you really need a multi-member LLC at this point. 

From my basic understanding it would make sense to change it to a rental and then do the remodel so I can claim depreciation on my cost, is this correct or not? 

There are lots of paid software programs that do this for you as well. 

I would ask the daughter this and see if there is someone else that she has been in touch with to get ahold of the month.