PLus after the 10 year tax abatement the cash flow will be severly impacted2.

That's my biggest concern.But I should also look at the tax and long term benefits.

Hey, I’m not an investor, but some unexpected costs to consider are closing costs, agent commissions, and most importantly, taxes.

Scale Strategically (if this applies to your goals) Reinvest profits, use the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), and leverage 1031 exchanges to grow your portfolio tax-efficiently.I'm a mortgage lender at Aslan Mortgage Lending and would love to find time to talk and discuss your journey.

However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

The contributions are lower so it takes a while to build, but once you do, it's tax-free investing. 

My question is do I have to recapture all the depreciation for tax in 2025?

If it is to cash flow right now, then you're right you would be a little tight with your tax/insurance escrows.

For example, using 70-80% leverage could preserve your cash for more deals while maintaining strong returns.A blended approach might work: pay cash for smaller deals to avoid delays and borrow on more significant properties to spread risk.

Meanwhile, your expenses, like debt service, taxes, insurance, and maintenance, continue.These are the requirements necessary to attain and maintain financial independence.