We are finding properties in BALT that are cheap enough (100-150k) that we could purchase, do renovations and then rent it to make a pretty good cashflow.

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

They're practically giving them away compared to 2021 prices.

I would be inclined to not hold on to a cash flow negative property, I see our costs only going up. 

For the remodel I am thinking of extending the main home (which would make it "L" shaped") to incorporate the detached carport and detached bedroom/bathroom.  

If it's your first LLC, though, it might be wise to work with an attorney to guide you through the setup process and some basic steps to take afterward.

Difficult to appraise because there were no comps in the area.

Thinking of trying to market to a handful of homeowners that would like us to manage the STR for a % of revenue.

When would you suggest to establish an LLC for your portfolio?

Hi all - I am an experienced investor in Central AR (from Little Rock to more rural locations up to 1.5 hours away, SFH & multi, etc.)