Cost segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.When a property is purchased, not only does it include a building structure, but it also includes all of its interior and exterior components.

They get their cut, you get the property.Of course, you have to figure out what it is worth and whether that's a wise investment for you.

I also prefer not to use a management company, as I don't want them cutting into my profits.My long-term goal is to generate enough income to live comfortably and eventually build a real estate empire.

So, your CPA is correct in saying that the insurance proceeds won't be taxable assuming they were used to repair or replace the damaged portion of the property.Cost Segregation Study (CSS): A CSS is a tax planning tool that allows you to accelerate depreciation deductions by identifying and reclassifying certain components of your property as shorter-lived assets.

In light of the recent 50bps rate cut, we're starting to see an uptick in requests for Freddie Mac SBL and Fannie Small Loan multifamily loan quotes.

Turns out, during construction, one of our vendors flushed something down the toilet, causing a clog, which led to the system overflowing and flooding the home.We ended up having to cut and replace drywall in multiple rooms and swap out the wet carpet, which will cost us around $10K.Mishaps like this will happen in Real Estate.

I have a duplex where the plumbing was getting backed up.Had a plumber go out there and put a camera in the lines and turns out there are roots growing into the plumbing from a nearby tree.The quote to rip out and replace the plumbing was a staggering number.My thought is to cut down the tree to stop the growing and then eventually put the liner in the plumbing.Any experience with this?

The only time we ever have a leverage cut is if the appraisal comes back rural, market rent is significantly less, or the credit score dropped under 700.

Lots of trees to cut up and haul off.

Hey Brian, you're not cash flowing, but you've significantly cut your living expenses!