When evaluating long-term real estate opportunities, keep in mind the four key pillars of investing:Appreciation – Focus on how your property’s value grows over time.Cash Flow – Assess your rental income after accounting for all expenses.Tax Benefits – Leverage deductions like depreciation to reduce your tax burden.Debt Pay Down – Use rental income to pay down your mortgage, steadily building equity.Think of it like investing in a 401(k) with a long-term perspective—especially in California, where property values can appreciate significantly over time.

James, from a contractor's perspective I don't typically recommend re-facing cabinets.

I'm interested in hearing different perspectives.

They presented a juicy case study to illustrate the benefit of depreciation recapture shifting from cost-segregated personal property to real property.

I think the market has to really shift, where people just don't want to take on rehabs for there to be equity built into the deal. 

In the only building I have bought that had tile there was a lot of cracking and chips due to seasonal foundation shifts and the chipping due to tenant damage.

I.e. if this property were located in Oakbrook/Centerville versus Miami Chapel/West Dayton, you will have a dramatic shift in price and operational ease.I would talk to brokers in the area.  

On the flip side, tighter regulations or changes in interest rates could shift market dynamics.

Banks ask for larger down payments to shift risk to the buyer/borrower in default. 

A little biased here, but Branson, MO, is a fantastic market if you're thinking of shifting from short-term rental (STR) to mid-term rental (MTR) or even long-term rental (LTR).