@Hiro Kitagawa, qualified improvement property has become a bit more interesting than your CPA made it out to be.Now, there is in fact a category for owners of non-residential real property called qualified improvement property (QIP) that as of 1/1/18 replaced the old qualified improvement property (yes, same), qualified leasehold improvement, qualified retail improvement, and qualified restaurant property classification rules, as well as includes some property that would not have fallen into those buckets previously.The committee reports indicated that QIP placed in service on or after 1/1/18 would be eligible for a 15-year depreciable life as well as bonus depreciation rather than the standard 39-year, non-bonus eligible method applied to non-residential real property.However, the law was not drafted correctly, i.e., there was a technical error, and the section of the tax code describing 15-year property (Section 168(e)(3)(E)) was in fact not amended to include qualified improvement property.So for now, strictly-speaking, in 2018, qualified improvement property is regular old 39-year property that is not eligible for bonus depreciation.We do expect that a technical correction to the law will be made, but for now the IRS has actually stated that it cannot guarantee that absent legislative correction it will accept the legislatively intended change in recovery period and bonus eligibility.Anyway, this is neither here nor there since you have stated you are a landlord of residential rental property rather than non-residential real estate.And this does not affect the application of 100% bonus depreciation to both qualifying new and used property place in service after 9/27/17 and before 1/1/23 that @Yonah Weiss pointed out.

Thanks @Steve Vaughan and @Wil Reichard,  So if I am not planning on doing the BRRRR method, because I don't want to deal with all the rehab that will be needed, how else would you go about it, given my situation?

There are other ways you can structure your business to limit the hit if you are ever sued directly. 

@Upen Patel You made me curious when you say that a HML is a mortgage irrespective of whether it has been recorded are you saying in the sense that it’s a loan on a piece of property and therefore a mortgage or is there another method of legally recording a mortgage?

find a good licensed structural engineering contractor.... my coin.kudos,Mary

I am reaching out to all of you for advice on how to to structure this partnership in a way that leaves us both comfortable and reassured that if things don't work out, our lives won't be torn apart.Thanks in advance,Cody McGonigal

On your small structure, you are already in for $10k and you haven't done anything yet. 

What's a good way to structure this?

.—(1) The landlord at all times during the tenancy shall:(a) Comply with the requirements of applicable building, housing, and health codes; or(b) Where there are no applicable building, housing, or health codes, maintain the roofs, windows, doors, floors, steps, porches, exterior walls, foundations, and all other structural components in good repair and capable of resisting normal forces and loads and the plumbing in reasonable working condition.

This allows the client to directly administer actual investments made with the plan, rather than rely on the custodian to do the processing.This Checkbook IRA LLC structure does provide an advantage to investors who will have multiple transactions or investment types that generate a lot of transactions or are time-sensitive in nature.