After investing $35,000 in targeted renovations, we elevated its appeal and market value.

Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

Not every person reading our conversation will have almost 3000 posts.I think it is possible to operate an MTR arbitrage ethically.

The reason is I want to separate my personal debt to income ratio from my real estate investing “business” and of course reduce personal risk. 

The data centers I have worked with in the past wanted to own the property and real estate.

in a few short years 1 property has produced over a $1/2 million in equity, thousands in cash flow, was leverage to buy another property which does the same and leverage to buy a small cash flowing business. 

So for the investors I work with, we look at New Construction In vestment property.  

I am in the same boat.

What counts most in RE are relationships, and this is as easy as going to RE meetups and adding every day just 1 new contact in your CRM, and following up every other month.  

Guys - I am a limited partner & invest in a multi-family building passively that was sold resulting in passive gains for 2024.