Additionally, the study must be completed by “qualified individuals” and “professional firms” that are competent in construction, design, auditing and estimation procedures for building construction.So while a specific methodology isn’t required by the IRS, taxpayers must ensure that their depreciation deductions and classifications of property are substantiated with supporting evidence.

Being based in Austin, you’re in one of the most dynamic markets out there, which gives you a fantastic foundation to build on!

Perhaps you have coverage for the replacement value BUT the insurance company when calculating the replacement property uses modern building materials like drywall but your original house had plaster which is much more expensive.

Most everything else you mentioned has been fairly standard on my builds since the beginning.

The FEMA 50% rule does come into play, but we do a lot of ground-up construction, so some investors that do have some new build/heavy rehab experience are tearing down and building back to current codes.

And because it’s a logistics hub (FedEx HQ, major distribution centers, and growing industries), rental demand stays strong.I’ve been in Memphis my whole life and have spent over two decades helping investors navigate this market and build profitable rental portfolios here.

Building a 4,000-square-foot, three-story duplex with a 1,000-square-foot ADU could cost about $1.83 million, including construction and permits (excluding land).

You’ll need to treat it like a business—handling tenant management, accounting, legal compliance, property maintenance, and more.That said, when done correctly, it’s a powerful tool for building wealth!

I have helped hundreds of investors execute 1031 exchanges and build diversified portfolios across various excellent markets, all while using just one property management service.

So any extra pointers or tips , books, would be great guys I would love to connect and build relationships!