My new thought is to make the basement a master bedroom, with another "bonus" room to add some square footage and be more attractive to investors.

Also, I am a California Resident so I heard I cant use Bonus Cost Segregation Depreciation for CA stage?

One aspect I am particularly interested in is taking advantage of TCJA bonus depreciation in the first year of purchase.  

Again, go back 12 months to see if there is a trend where the cost/sf goes up with the size of the property, but, once it reaches a size, it either slows down its increase/sf, or it just reaches a maximum ARV, and the sq ftg above that is just a bonus to the buyer.Market analysis is everything, and the property analysis is just a result of how it fits into that market (actually micro-market).  

It's produces a nice bonus income, but we have to be careful to balance it with their responsibilities and I partner with them to ensure they don't struggle.

The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories.The Cost Segregation Study was performed on the Asset Depreciation Range (ADR) and is based on a 40% tax bracket for State and Federal Taxes.

The rest of the "bonuses" are built into BP Pro level. 

A real bonus with a guy like this is that he will understand in clear terms the consequences of screwing up with you.

If you buy or LP in a larger multi family deal, you'll be able to do a cost seg study and receive bonus depreciation.

@Kyle A.Nice overview about cash calls and questions & issues investors should consider.Consult CPA for sure and be aware even if property is sold at a loss if cost seq and bonus depreciation was used, this sale could actually create a taxable gain in the year sold.For example let’s say a property was purchased for $15M in 2022 and $5M of bonus depreciation was taken in 2022, basis in property is now $10M.Now sold in 2023 for $13M for an actual loss of $2M.But for tax purposes said sale actually generated a $3M gain - $13M less $10M basis.