Quote from @Heather Kiddoo: I'm happy to jump on a zoom and talk about what TC's do in the creative real estate transaction if either of you are interested @Mike Hern @Chris Seveney Thanks for the offer, but we have an in house team and use attorneys / escrow companies for all of our real estate transactions. 

I found a house that comes out to an IRR of 11-12% when I run the numbers.

I am looking at a house in that area as a buy and hold with a tenant already in place. 

Now 10 years later there are luxury apartment & condo buildings, new construction homes, completely renovated homes etc in place of the old run down low income housing.

Fantastic, We are currently house hacking it. with both other units it covers the mortgage and we get about $200 profit a month.

I am  fairly new to real estate bought a town house in San Diego last year as a primary home.

That's what you will need to sell the house eventually.

You may not be able to get as much house for the same amount of money if you decide to buy another rental in the future but if you do your research and spend time searching you can still find good deals for similar properties.

Thinking of house hacking to start.  

I planning to have backyard installed in new construction SFH.I read this cannot be added to the cost basis of the rental property and be depreciated by 27.5 years since it is not an improvement to the property.But what about paving the patio and side of the garage, where it is touching the house.