A cost segregation study looks at the overall building that you purchased and breaks it down as much as possible.The purpose of this is to increase the depreciation expense.Without a cost segregation study, you are depreciating the property over two items(Building and Land).However, a cost segregation study might identify items such as fencing which might be eligible to be depreciated over 15 years instead of 27.5 years.Depending on the year that the building was placed into service, you might be able to take bonus depreciation on certain items.The follow-up question to ask your CPA is will the cost segregation study help me, and by how much?

12 units, but 2 of them are short term rentals.

Good morning, im a local realtor in the mcallen area.

Personally, I couldn't have handled the responsibility of a RE investment when I was 20. 

I highly suggest you get involved in some of the local meetups.

Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area.

Sometimes we help coordinate, just depends on the issue and the property. 

It helps if you pay someone, usually an attorney, to be the manager of your LLC in that state.

I’m curious—how are you all navigating the current lending environment for your real estate deals?

Hi Charles, I think you made the best decision in terms of an exit strategy.