ProIncrease current year depreciation expense for current year and near future years which results in a decrease of taxable income.ConsYou have to pay money to engineers to perform the studyYou have to pay accountants extra money due to a more complex tax situation.Taxpayers who are not real estate professionals by the IRS may not get an immediate benefit from a cost seg study

A purchase like this should help your debt ratios/decrease your leverage not increase it.1) primary residence debt (including heloc)/your income= debt ratio now2) add new building debt / your income +75% of income from building= debt ratio after purchase3) #2 should be a better number then #1

House hacking is a great strategy for many here to decrease their monthly housing payment.

If you ever saw a 10%+ decrease foreign money would flood the area IMO.

Not sure if this will decrease my ability to borrow money from other lenders later.What does everyone think of the pros and cons of each option?

Lisa I would just advise you tread lightly on the flat rate agents, you tend to get what you pay for when working with them from my experience.to your point on not being sure where to buy I would suggest like the others to come up with a game plan in which you would like to execute BEFORE you list your home, if you are looking to 1031 that would be very important and decrease the stress as you watch the clock tick :)Best of luck.

We separated the electrical panels and added 2 additional high efficiency natural gas boilers so that the tenants could be independently responsible for their heat and electricity bill, increasing the cash flow significantly by decreasing our expenses.

But the other opportunity is that I have a great friendship with an investor who is ready to decrease his holdings and he wants to sell a couple properties to me.

Also, your lower downpayment I think will go further than a slight decrease in the interest rate. 

This increases expenses to about 46% and decreases NOI to $42500.