.→ 60% Bonus Depreciation (2024): For assets placed in service in 2024, the bonus depreciation is scheduled to further decrease to 60%.→ 40% Bonus Depreciation (2025): For assets placed in service in 2025, the bonus depreciation is scheduled to decrease to 40%.→ 20% Bonus Depreciation (2026): For assets placed in service in 2026, the bonus depreciation is set to reduce to 20%.We are investing in equipment (section 179) to extract this bonus depreciation without having to recapture the losses.

Lastly it's rare to find a great deal that is cashflowing from day 0 if it's off market and requiring "value add".The value is stabilizing the product, Reno and raising rents, decreasing expenses etc..

We haven't noticed any decrease in bookings.

"Buying down the rate" will have a variable point amount for a variable decrease in interest rate. 

As that wave is absorbed I think we will see rental inventory decrease again. 

You could still be slightly negative cashflow after moving out but it can be a huge win from a few different standpoints-you have already decreased your rent while living in the house hack- you purchased a future rental property with 5% down.- your return on the 5% down is typically 75%+.

@Steve FeltThis is what the lender sent me:This fix and flip or acquisition and rehab line of credit highlights.Revolving and can be used over and over as you pay it down or off.No employment or income verificationNo tax returns requiredStarting down payment 15% - will be reduced to 10% once third property is completed and 5% once fifth property completedAn “as is” and ARV (after rehab value) is required on each projectLine of credit starts at $500,00 – will increase as experience growsInterest rate will decrease as experience growsMax ARV is 70% - will increase to 75% once third property completedTerm 12 months INTEREST ONLYLTC (loan to cost) – up to 85% - down payment is 15% of total acquisition & rehab costYOU CAN ACQUIRE MULTIPLE PROPERTIES AT A TIMEPlease note we do not advance rehab funds at closing.

All in all, you don't invest in real estate to decrease your w2 taxable income. 

Ultimately, this has decreased the year 1 projections of the deal from a 15% CoC return to a 10% CoC return (still pretty good in our book but not as great as it initially was on paper). 

Even if you moved to a less expensive home in the same areas, with the current interest rates, you are unlikely to decrease your mortgage payments.