I'm in escrow with a home that has advertised a 300 sq foot "bonus room", but in actuality it is an enclosed sunroom without insulation and a waffle roof.I asked if it was permitted and the seller doesn't know as they "bought it that way".

I just feel like I'm taking all the risk here, because his renovation job gets paid for sure, no matter what, and the profit is a bonus for him.Should I ask him to contribute a part of down payment (how many %)?

@Bridgette Smith Hi Bridgette, everyone has there own numbers I'm sure but I look for $200-$250+ cash flow monthly, a house that will have above avg. appreciation (a bonus if your exit strategy for buy and hold properties is to sell after 5-7 years).

I didn't do any rehab, and just as a bonus, the property value in one year has gone up quite a bit.

The market is Phoenix AZ.The best way is to attend a local real estate networking event and see who the big investors are using.There are some state specific knowledge that the CPA should have based on where you live and where you invest.Does the state adopt federal guidelines when it comes to bonus depreciationAre there any state specific credits?

We wrote off entire profit by doing bonus depreciation.

Anyone know about the bonus mentioned in the July 2020 email (see below)?

I would not factor the tax benefits and appreciation from acquiring the property because I would look at them just as a bonus. 

Perhaps you're thinking of bonus depreciation which is still 100% this year. 

Congrats - starting small and having a learning experience is the way to go, nice profits/return a bonus!