Here is one proposal with taking 100% bonus depreciation this year in a 35% tax rate, ~33% effective rate.

I watch drops and pricing.Just like a regular seller the bank will go through a cycle to come to reality of the price needed to sell.In the day REO brokers would refer to being the lucky one on the carousel to get the property to sell.Usually these AM companies will list the REO drop a few prices and then re-assign.The property might be sold on the 3rd agent that gets it.When I watch the MLS I look for the updated BPO and by how much the bank is dropping.If they have had too big percentage price drops in 60 days I know it is time to hit them with a low offer.I don't want to wait until they drop too low as I will have competition to bid it up.Instead I want to know they will go lower and get it accepted.Every bank is different and some are really aggressive in wanting to sell.I have had bad AM's just kill deals and sometimes you can't do anything about it.Sometimes they are leaving the business and don't care,other times they already have the bonus for the month,and other times they are new and trying to make a name for themselves.We get this with BPO companies.Some new person comes on and flags everything for stupid stuff in quality control.Stuff that doesn't make sense.After a few weeks to a month of training the new QC reviewer learns the ropes and it gets better.

Many San Diegans are willing to accept negative cashflow initially because of the favorable laws pertaining to the ability to add/convert ADUs or add dwelling units through bonus density laws. 

In some cases you can also benefit by bonus depreciation via cost segregation.Step up in basis.  

Added bonus there is a hospital fairly close and my understanding is that people start accepting their residence programs in March. 

Not sure what those are. and I was referring to tax year 2021-2022.I did apply for the homeowner's exemption of $7000 on a property value of $810,000.My another question: I know that I can take advantage of depreciation over time but is there any rules surrounding bonus depreciation.

They think they're getting a bonus because they're getting out earlier, but the reality is they did more work in a shorter time then if they were stopping for a smoke once an hour and taking a half hour lunch.The point here is that your investor should look at your percentage as a salary.

I sign up for cards with mileage bonuses that enable me to travel for free.

So much so that the owner told me he had to give him a very large bonus at the end of the year just to make it up to him.

Every situation is unique but the property has to work in the worst case scenario, which here sounds like if you are unsuccessful at raising the rents.If you are able to raise the rents, one unit at a time, that should be bonus, but don't buy property based on best case scenario, in my experience.