Being leveraged for a bit isn't the end of the world - there are usually options available if push comes to shove - 401k loan, personal loan, sell stocks, credit card (then balance transfer continuously until you can pay the balance off) and lastly sell.

Rental bought in 2023 and initial return.For assets - Cash, depreciable assets less accum deprn, landFor liabilities - Open credit card balances (Charged rental improvements and expenses on 0% interest credit card)Partnership equity - Cash contributions less net lossMy assets are greater than liabilities + partnership equity

Really something the lender should thoroughly explain to someone purchasing a home where the taxes at the time of closing don't represent the final/improved tax amounts.   

Therefore the property types that are the most favorable to generate bonus depreciation will be those with a high degree of what the tax code refers to as "land improvements".

I just purchased my first property with a 2nd home loan in Savannah Georgia that I am running as a short term rental.

Bonus depreciation and Section 179 allowances for improvements can be utilized, with the latter, however, capped at zero to prevent negative losses.

Should the $10k loan be a lien on the house?

I will likely have to contact an attorney, but first I will contact another loan servicer that I recently found, to see if they want to take this on.

Greetings BP family,I recently passed my SAFE Act exam and am ready to begin building my book of business as a mortgage loan officer / originator in Virginia!

Hey @Mitul Gandhi - Generally speaking, the neighborhoods in Chicago that have the least taxes are going to be the neighborhoods that have the lowest property values.Properties that have been renovated (and a permit pulled) will typically go up in taxes because the city knows that there were improvements made.