We are trying to get everything done this year so that we can still qualify for the 80% bonus depreciation before it drops down to 60% in 2024.

I view appreciation just like my annual bonus...a bonus.  

I am now an employee with RedFin as a realtor who makes a salary, bonus pay, and benefits.

Then that equity will be there to use if you need it for another project.A refi at these higher rates would be for a long time.Also make sure you advertise the school nearby not for the bonus but to make sure that no one who can't be close to a school accidentally rents your house.

Borrower has a favorable first mortgage, 2% interest and a deferred balance due to a previous loan modification. ( this is just a bonus as the loan is AMAZING ) - Property is worth Est. 440k as-is. and with a rehab of est. 50k could resell for est. 550k.

A low interest rate would be a bonus.

You could see 80% bonus depreciation if you get it done this year. 

1,400,000 / 27.5 = $50k a year and maybe you bump it up with a cost segregation analysis and bonus depreciation.I'm sure you brilliant minds will find more ways to skin this cat, but does anyone see any value?

Since you used more than the basic entitlement in the first loan, we will have to consider the bonus entitlement, which is based on the county loan limit.In Cook County, Illinois, the loan limit is $726,000.

@Wei Jie Yang I view appreciation as an added bonus.