Capitalized costs increase the basis and depreciation deductions over 27.5 years.

With a few tweaks to the management structure, and with new leadership, I figure we can greatly increase the revenue.

The time back will free up more time to increase your active income, or acquisition of more rentals to get you more cashflow (passively or actively).

I have spent the last few years reading many books on real estate, taking real estate courses, researching, saving as much as I could, investing (to increase my purchase power) and finally feel I can begin my real estate journey this year. 

That then registers the property at a new “base rate” and your future rent increases all be “base rate” + Inflation as guided by the town.

For more expensive properties, the flat fee means the credit/refund increases exponentially, like $19,000 on a $1 million property.4.

I'd underwrite the property, with that low interest rate assumable mortgage, to cash flow positively from day 1 as a long-term rental, but be willing and able to use the rent by the room strategy or to rent out part of the property as a Short Term Rental to dramatically increase cash flow during my occupancy. 

Duplexes provide privacy, flexibility, and scalability, but strict short-term rental regulations may increase upfront costs and maintenance.

Cost of value add was $120k, so over $580k of increase above costs.  

Hi Ethan, I would not entertain the idea of getting more money from this tenant in order to potentially increase your cash flow.