ThanksYes- Rehabbers will buy expensive homes if they can make their profit margin.  

This money can be reinvested in opportunity zones or used to enhance your current properties.Maximize the 10-Year Exclusion: Opportunity Zones regulations exclude capital gains generated by your investment from any taxation.

Hey @John Ba, Best way to handle this going forward is hold the property in an American LLC with its own bank account, so you can clearly delineate the expenses and income as well as get some asset protection.

ADU takes too long and expensive.

Allows you to tinker with occupancy, daily rates, various expenses, and loan assumptions.

In general, a house built say before the 1950's or 1960s a basement remodel is going to be a lot more expensive than a newer built home, but that is a big generality.

I've also built and seen others build a lot of equity in that time.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: 1%-1.4% rule dealsROI: 10-14%Cash flow: $150-$300/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the "sweet spot" in Metro Detroit.

It is more expensive though, so I may look into yours too, thanks.

As an example, I'm personally looking for long term appreciation to generate wealth in the future, because I make money for my day to day expenses with my current job.

If you are looking to generate tax breaks, if the property is a more expensive one, you might do a cost segregation study and accelerate the depreciation deduction when you purchase it.