Other asset classes aren't so the depreciation schedule may not be as quick/beneficial.2) And it is even possible to find deals that are what I call "super-shielders" and which not only shield all the distributions in the investment but have extra to use over on other real estate investments that are throwing off income. 3) Unless you're doing a 1031 exchange  at the end or similar tax structure to defer taxes, you will have to *pay back* all that depreciation benefit at the end (on sale...which for you is in 5 years)  via depreciation recapture.

Typically how  much extra should I budget for, for these unknowns? 

@Victoria Hogan you're panicking because you don't have enough data to understand what's going on!

I will also note that the RC zoning district allows for quite a few extra units so you would get the best use out of your land by building a quadplex or something like that.if you are interested in going forward though I work part time at NOLA builds in town and they do great work for construction at all levels.feel free to reach out if you have more questions 

I would only do it if you need the extra $3k cash flow this year less the cost of doing the segregation.  

There is extra costs, more regulation, and more liability. 

Hey BP,I'm diving deeper into market research and looking to build a reliable process for identifying market metrics, data, and trends.

I don't want to deal with massive headaches  for extra perceived yield. 

maybe just me, dont go cheap on TP. you can buy inexpensive, but make sure it doesnt feel cheap. its worth an extra couple of dollars so guests dont remember that everything felt cheap

Account Closed   I wouldn't put too much stock in a history with so few data points.