I wanted to share this article...IR-2018-206, October 19, 2018WASHINGTON —The Treasury Department and the Internal Revenue Service today issued proposed regulations and other published guidance for the new Opportunity Zone tax incentive.Opportunity Zones, created by the 2017 Tax Cuts and Jobs Act, were designed to spur investment in distressed communities throughout the country through tax benefits.

There is a design overlay (a) that allows for 50% bonus density for projects that voluntarily submit to a type III design review (not sure what that entails).

And make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance   a) Property Hazard Insurance (0.3-0.45%)   b) Flood Insurance   c) Earthquake Insurance   d) Umbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy)   a) Water § Sewer § Garbage   b) Electricity   c) Natural Gas   d) Propane9) General Maintenance (usually 5%)   a) Upkeep § Landscaping   b) Snow removal   c) Repairs   d) New Appliances   e) Make ready10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.), including...  

This usually means there's a porch or Florida room that can be brought "under air" to increase the total square footage of a home and drive the price WAY up from the purchase price.Also, and I can't emphasize enough how important this is, put some thought into your design.

., and likes to design and do renovations - himself, with maybe a young guy assistant or two. 

I have meticulously designed, built, decorated, furnished, cleaned, stocked with hotel-like essentials, cleaned again, and published my property as a vacation rental on AirBnB.

She is a graphics designer and makes pretty good money, while also grinding most nights and creating an Etsy portfolio for passive income in the long run.She is very hesitant in buying a Duplex.

Until then we continue with 1970's design.

The property has a small 522 sq foot SFR that is designated as an HPOZ contributor, and our client is looking to build a new modular home about twice the size on the large lot and convert the existing SFR into the ADU. 

My other unit has a washer with the mechanical controls so it'll be interesting to see which one lasts longer.