The estimate I have from a cost segregation firm is $316k (w/ study) vs $28k (no study)-Assume we're in the 37% bracket  -Does this mean, I can claim a $117k depreciation deduction for this year? 

Assuming you have an architect, my guess is that they will lean towards using the AIA docs.

While real estate prices have been steadily increasing in Southern Spain over the last decades, they've been steadily declining in Southern Italy.I was even more shocked as I assumed that Montse would be your first name and you therefore would be Spanish (I found that out because somebody called Montse joined the owners' Facebook group of a community in which we own a condo in the Costa del Sol).

I assume this income/loss is passed onto your personal return through a K-1 and the business files a 1120? 

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

Account Closed first, most cities in Metro Detroit have some type of rental property inspection every 2-3 years.It's not really a big deal 99% of the time - especially for owners who are NOT slumlords:)Also, a quick Google search will show that several states/cities are passing/considering similar legislation.One of the biggest mistakes we see newer investors making is NOT properly understanding Neighborhood/Property/Tenant Classes and naively assuming that any rental they buy will deliver Class A results.Read our copy & paste thoughts below and DM us if you'd like to dicuss more about the Detroit market:)-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

https://www.airbnb.com/users/s...Let's remove the sale/transfer aspect of it and still consider the same question, or assume that as it is likely, not possible to sell the listings themselves.

Point is cash flow (positive or negative) is inconsequential compared to the appreciation assuming you do not need the cash flow to pay the bills.  

Thanks Dennis, I think you're right that planning for a more conservative return would be a good idea.I re-ran my numbers at an even more conservative level:Lower ARV: $800,000Lower income levels (I'm assuming it will take a couple years to get up to full potential income, but giving myself 3 years was a conservative estimate):Year 1: 50k (NOI $1,000)Year 2: 80k (NOI $31,000)Year 3: 100k (NOI $51,000)My ROI numbers come out to:1% (year 1) 46% (year 2) 76% (year 3)This scenario seems like an acceptable risk to me, when the upside seems far more profitable.

If the former, give her options to make sure rent is paid on time and, assuming she starts to pay on time, when it comes time to renew the lease, do not renew it.