If you want cash flow, mortgage notes or mortgage note funds/syndications can yield 10 - 12% annual with a favorable risk / return.  

By making this election, the taxpayer may be able to use a more favorable method of depreciation and simplify recordkeeping.Insight: Under this option, tax rules allow a cost segregation study to apply to the combined carryover basis and excess basis.

These are sometimes referred to as in-law units or granny flats and they are not new to the commonwealth but a favorable ADU policy has the potential to add over 10,000 units and offer homeowners a potential source of income.As a lifelong house hacker, my wife and I immediately recognized the potential of this 2-story garage in the back of the property.

Do yourself a favor and enlist a good buyer’s agent.

Therefore the property types that are the most favorable to generate bonus depreciation will be those with a high degree of what the tax code refers to as "land improvements". 

Some might choose to sell and pay the taxes, especially if the market conditions are favorable, but it would likely be a tougher decision without the 1031 option.As for the broader impact, it could hurt the economy by slowing down real estate transactions and reducing the fluidity of investments.

It's challenging because I think it's too good to be true for both of us where I'm at right now, but later in my career it would be too good to be true for me, and weigh heavily in their favor for your reasons.  

Numbers are favorable for HML, 2% origination fee, 12% interest, 90% LTV/100% rehab.

This didn't bother me much; I had a feeling their estimates favor them a little more and that's cool IF you already know a little about rehab costs, ARV, and the current market in that area.

Do both of yourselves a favor and give it a long lead time, that way they can come to terms with the new rent and make adjustments to their budget, and if they are moving out, you both have time to get your ducks in a row (you to try to do a fast turnaround on the rental) and them to find an appropriate new home.