Assets identified in this study include:Building systems: water heater, electrical distribution, HVAC, plumbinPermanent Fixtures: windows, doors, bathroom fixturesStructural Components: Roof construction, drywall, wood framingInterior Construction: Wood flooring, stairs, ceramic tileThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

For most STRs, it is Schedule E.

Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

We don’t have an attorney yet, which is why I wanted to know in general what a schedule of fees would amount to.

I would be happy to grab coffee sometime if that is something you could fit into your schedule one weekend.

Current status versus schedule/budget?

It provides in-depth insights, including valuation analysis, debt scheduling, profitability metrics, IRR, CoC, equity multiple, competitive analysis and it'll even build out your LOI automatically.

She also works with a bunch of veterans so she's used to having to communicate remotely and work around schedules.

I got their first agreement signed from a notary in person but this time around I have multiple tenants that work all different schedules and it is difficult to get all of them together to do this in person.

Some folks, assuming they have time and renovation experience, would use the $100k for a flip and leverage HML for the rest of the financing.Others would use $100k down to buy a $400k property and call it a day.It really depends on your goals and schedule.